Question

_____ is the name given to the bank's accounting system for all recognized transactions that affect the account, including deposits, electronic transfers, service fees, and checks presented to the bank for payment.

A. Bank ledger balance
B. Company book balance
C. Overdraft balance
D. Bank available balance

Answer 1

A bank ledger balance encompasses all the recognized transactions in a bank account, which includes deposits, electronic transfers, service fees, and checks.

Step-by-step explanation:

The correct answer to the question is A. Bank ledger balance. This term refers to the bank's accounting system for all recognized transactions that affect an account. These transactions include deposits, electronic transfers, service fees, and checks that are presented to the bank for payment. The bank ledger balance provides a comprehensive record of all these transactions, which is crucial for the bank to maintain an accurate understanding of an account's status. In contrast, the company book balance is the account balance according to the company's records, which may not always instantly reflect transactions that are not yet recorded or cleared by the bank.