multiple choice question\nchoose the statement below which is correct regarding which bank reconciliation…

multiple choice question\nchoose the statement below which is correct regarding which bank reconciliation items require adjusting journal entries.\nonly the items reconciling the book balance require adjustment.\nonly the items reconciling the bank balance require adjustment.\nall items reconciling both the bank balance and the book balance require adjustment.

multiple choice question\nchoose the statement below which is correct regarding which bank reconciliation items require adjusting journal entries.\nonly the items reconciling the book balance require adjustment.\nonly the items reconciling the bank balance require adjustment.\nall items reconciling both the bank balance and the book balance require adjustment.

Answer

Brief Explanations:

In bank reconciliation, adjusting journal entries are made for items that affect the company's book - balance. Items that affect only the bank's records (e.g., outstanding checks, deposits in transit) do not require adjusting entries in the company's books. Only the items that reconcile the book balance (such as bank service charges, interest earned, NSF checks) need to be adjusted in the company's accounting records.

Answer:

Only the items reconciling the book balance require adjustment.