multiple choice question identify the item below that would be subtracted from the book balance on a bank…

multiple choice question identify the item below that would be subtracted from the book balance on a bank reconciliation. outstanding checks interest earned deposit in transit nsf check

multiple choice question identify the item below that would be subtracted from the book balance on a bank reconciliation. outstanding checks interest earned deposit in transit nsf check

Answer

Brief Explanations:

An NSF (non - sufficient funds) check is a check that has been written but bounces due to lack of funds in the account. When this happens, the company's book balance needs to be decreased as the amount that was initially recorded as a deposit is now invalid. Outstanding checks are subtracted from the bank balance, interest earned is added to the book balance, and deposits in transit are added to the bank balance.

Answer:

NSF check