Question

multiple select question select all that apply which of the following transactions should be added by the banks during the reconciliation process? □ notes collected □ outstanding checks □ overdrafts □ direct deposits

Explanation:

Bank reconciliation involves adjusting the company's book balance and the bank statement balance to match. Transactions added to the bank balance are items the bank has not yet recorded but the company has, or items that increase the bank balance. Outstanding checks are checks the company has issued but the bank has not yet processed, so they reduce the bank balance when cleared. Notes collected, overdrafts, and direct deposits are transactions the bank adds to the account during reconciliation: notes collected are funds the bank receives on the company's behalf, overdrafts are bank-provided short-term credit added to the account, and direct deposits are funds sent directly to the bank account that the bank records.

Answer:

☑ notes collected
☑ overdrafts
☑ direct deposits