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

question 52

Multiple Choice

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

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

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Definitions:

Future Cash Flows

Estimated financial gains or expenditures expected to occur in the future as a result of current investments or decisions.

Stock Ownership

Holding shares in a corporation, giving the shareholder a claim on part of the company's assets and earnings.

Price Appreciation

The increase in the value of an asset or security over time.

Expected to Pay

The anticipated amount of money that will be disbursed for liabilities, services, or goods acquired.