Which of the following would be added to your cash balance based on the information on your bank statement?Multiple choice question.Deposits in transitOutstanding checksInterest deposited
Question
Which of the following would be added to your cash balance based on the information on your bank statement?Multiple choice question.Deposits in transitOutstanding checksInterest deposited
Solution
The item that would be added to your cash balance based on the information on your bank statement is "Interest deposited".
Here's why:
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Deposits in transit: These are amounts that have been sent to the bank but have not yet been recorded by the bank. Therefore, they are not yet part of your bank balance.
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Outstanding checks: These are checks that have been written and given out, but have not yet been cashed or deposited by the recipient. They are deducted from your bank balance, not added to it.
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Interest deposited: This is the amount of interest that the bank has added to your account. This increases your bank balance. Therefore, this is the correct answer.
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