Question

Which of the following item would cause cash per the bank statement to be smaller than the balance of cash show in the accounting records? A. Check #777 written by the company in payment of a debt for $730.10 a recorded by the bank as $701.30 B. Deposits in transit C. Interest earned on the average balance of the checking accounted D. Outstanding checks E. All of the above would cause the balance per bank statement to be greater than the balance per books.

Answer 1

Answer:

Which of the following item would cause cash per the bank statement to be smaller than the balance of cash show in the accounting records?

Explanation:

A deposit in transit is money that has been received by a company and sent to the bank, but has yet to be processed and posted to the account by the bank