Asked by Alexis Karageanes on Jun 12, 2024
Verified
Deposit in transit
A) Bank statement adjustment
B) Company books adjustment
C) Either
Deposit In Transit
Funds that have been received and recorded by a company but not yet credited by its bank, often seen in bank reconciliation processes.
Bank Statement Adjustment
Adjustments made to a bank statement balance to reflect transactions or corrections not yet recorded by the bank, ensuring accuracy in financial records.
Company Books Adjustment
Changes or corrections made to the accounting records of a business to reflect the true financial position.
- Detect and execute adjustments on bank statements and adjustments in company ledgers.
Verified Answer
SB
Sharon BusseyJun 12, 2024
Final Answer :
A
Explanation :
Deposits in transit are adjustments on the bank statement side because they represent amounts that have been recorded by the company but not yet reflected on the bank statement.
Learning Objectives
- Detect and execute adjustments on bank statements and adjustments in company ledgers.