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Financial Accounting

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Bank Reconciliation - Classification

FINACT-P4E8Y2

When performing the bank reconciliation, an item appears on the books that was not recorded by the bank. This item increased the cash balance. The bookkeeper should record this reconciling item as a(n)

A

outstanding check and subtract from the bank balance.

B

deposit in transit and add to the bank balance.

C

deposit in transit and subtract from the book balance.

D

omission. This item should not be recorded.