Which of the following are typical reconciling items on the book side of a reconciliation because the company did not know about these items until it got the bank statement?Multiple select question.interest incomeelectronic fund transfersservice chargesoutstanding checksdeposits in transit
Question
Which of the following are typical reconciling items on the book side of a reconciliation because the company did not know about these items until it got the bank statement?Multiple select question.interest incomeelectronic fund transfersservice chargesoutstanding checksdeposits in transit
Solution
The typical reconciling items on the book side of a reconciliation because the company did not know about these items until it got the bank statement are:
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Interest income: This is the interest that the company earns on its bank balances. The company may not be aware of the exact amount until it receives the bank statement.
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Electronic fund transfers: These are transactions that are done electronically. The company may not be aware of these transactions until it receives the bank statement.
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Service charges: These are fees charged by the bank for the services it provides. The company may not be aware of these charges until it receives the bank statement.
Outstanding checks and deposits in transit are typically reconciling items on the bank side of a reconciliation. Outstanding checks are checks that the company has issued but have not been cashed or deposited by the recipient. Deposits in transit are deposits that the company has made but have not been recorded by the bank.
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