Final answer:
The unadjusted bank balance is the balance shown by the bank statement before adjustments, while the unadjusted book balance is the balance shown in a company's books before adjustments.
Step-by-step explanation:
In banking, the unadjusted bank balance refers to the balance shown by the bank statement before any adjustments are made. To find the true cash balance, we need to consider any additions (+) or subtractions (-) that need to be made to the unadjusted bank balance. These can include items such as outstanding checks, deposits in transit, bank errors, and bank charges. By factoring in these adjustments, we can arrive at the true cash balance.
Similarly, the unadjusted book balance refers to the balance shown in a company's books before any adjustments are made. To determine the true book balance, we need to consider any additions (+) or subtractions (-) required to reconcile the book balance with the bank balance. These can include items such as outstanding deposits, outstanding withdrawals, errors in recording, and fees or interest earned. By adjusting for these items, we can find the true book balance.