Question

multiple choice question
which transaction would cause the bank balance to be higher than the checkbook balance?
○ nsf check
○ deposit in transit
○ service charges
○ note collected

Explanation:

• An NSF check reduces the checkbook balance when discovered, but the bank has already deducted it, so it makes checkbook higher than bank.
• Deposit in transit is recorded in checkbook but not yet by the bank, making checkbook higher than bank.
• Service charges are deducted by the bank but not yet in checkbook, making bank balance lower than checkbook.
• A note collected by the bank is added to the bank balance but not yet recorded in the checkbook, so the bank balance is higher than the checkbook balance.

Answer:

D. note collected