Question

13.
Mitch is reconciling his checking account. He is using his bank statement and check register to do this. He knows that his current balance is higher than what his bank statement reflects. Based on this information, which of the following will he need to remember to include when reconciling his account?

A.
Only deposits showing on her bank statement

B.
Outstanding withdrawals

C.
Only withdrawals showing on his bank statement

D.
Outstanding deposits

Answer 1

D. Outstanding deposits

If Mitch's register balance is higher than the bank statement, it likely means he has recorded deposits that the bank hasn't yet processed (deposits in transit). Those outstanding deposits should be added when reconciling.