Assuming the Account Is Not in Overdraft, When Reconciling the Ledger

question 51

Multiple Choice

Assuming the account is not in overdraft, when reconciling the ledger with the bank statement a deposit in transit should be:

• A) added to the general ledger bank balance.
• B) subtracted from the general ledger bank balance.
• C) added to the bank statement balance in the reconciliation.
• D) subtracted from the bank statement balance in the reconciliation.

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Definitions:

Duties

Responsibilities or obligations that an individual, company, or government has under the law or contract.

Agency Agreement

A contract where one party (the agent) agrees to act on behalf of another (the principal) in business transactions.

Operation Of Law

An operation of law is a legal change that occurs automatically due to existing legal rules, rather than actions taken by the parties themselves.

Employee Status

A classification that determines if an individual is employed by a company, affecting their entitlement to employee benefits and protections under labor laws.