Deposits in transit have already been ______.Multiple choice question.deducted from your cash balance per your books because they have not cleared the bankadded to your cash balance per your books and not to the bank balanceadded to the bank balance and not to your cash balance per your books
Question
Deposits in transit have already been ______.Multiple choice question.deducted from your cash balance per your books because they have not cleared the bankadded to your cash balance per your books and not to the bank balanceadded to the bank balance and not to your cash balance per your books
Solution
The correct answer is: "added to your cash balance per your books and not to the bank balance".
Deposits in transit are amounts that have been received and recorded by a company, but are not yet recorded on the bank statement. This is because there is a timing difference between when the company records the transaction and when the bank processes the deposit. Therefore, these amounts have already been added to the company's cash balance per their books, but not yet to the bank balance.
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