Which of the following statements pertaining to bank reconciliations is false? a. Outstanding checks are deducted from the bank cash balance. b. Deposits in transit are added to the bank cash balance. c. Bank service charges are deducted from the bank cash balance. d. Non-sufficient funds checks identified in the bank statement are deducted from the book cash balance, not the bank cash balance.
Which of the following statements pertaining to bank reconciliations is false? a. Outstanding checks are deducted from the bank cash balance. b. Deposits in transit are added to the bank cash balance. c. Bank service charges are deducted from the bank cash balance. d. Non-sufficient funds checks identified in the bank statement are deducted from the book cash balance, not the bank cash balance.
Auditing: A Risk Based-Approach (MindTap Course List)
11th Edition
ISBN:9781337619455
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Chapter10: Auditing Cash, Marketable Securities, And Complex Financial Instruments
Section: Chapter Questions
Problem 31CYBK
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![Which of the following statements pertaining to bank reconciliations is
false?
a. Outstanding checks are deducted from the bank cash balance.
b. Deposits in transit are added to the bank cash balance.
c. Bank service charges are deducted from the bank cash balance.
d. Non-sufficient funds checks identified in the bank statement are
deducted from the book cash balance, not the bank cash balance.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fdfc745d3-61a4-4a1f-b21a-7765b9429912%2Fbd189e37-a143-4613-addf-7aca4888783f%2Fhzwq19m_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Which of the following statements pertaining to bank reconciliations is
false?
a. Outstanding checks are deducted from the bank cash balance.
b. Deposits in transit are added to the bank cash balance.
c. Bank service charges are deducted from the bank cash balance.
d. Non-sufficient funds checks identified in the bank statement are
deducted from the book cash balance, not the bank cash balance.
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