BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
bank service charges.
|
|
|
outstanding checks.
|
|
|
NSF checks.
|
|
|
notes collected by the bank.
|
Detailed explanation-1: -Bank service charges, check printing charges, and other electronic deductions that are not yet recorded in the company’s accounts will become deductions from the cash balance per the books. Electronic deposits not yet recorded by the company will become additions to the cash balance per books.
Detailed explanation-2: -Deposits in transit would be added to the balance per bank statement in a bank reconciliation.
Detailed explanation-3: -Items like postdated checks, certificates of deposit, IOUs, stamps, and travel advances are not classified as cash.
Detailed explanation-4: -Outstanding checks are those that have been written and recorded in cash account of the business but have not yet cleared the bank account. They need to be deducted from the bank balance.