Question

Select the items below that would cause the bank statement balance to differ from the depositor's book balance.

- Bank Service charges, Deposit in transit, Cleared checks
- Cleared checks, Bank service charge, NSF check
- NSF check, Outstanding checks, Supplies expenses
- NSF check, Deposit in transit, interest paid by ban

Answer 1

The bank statement and book balance differ primarily due to bank service charges, deposits in transit, cleared checks, NSF checks, and interest paid by the bank. Supplies expenses do not cause discrepancies as they are recorded directly by the depositor and do not impact the bank's records until a related payment clears.

Step-by-step explanation:

The bank statement balance typically differs from the depositor’s book balance due to several items that are accounted for by the bank differently than by the individual or business. These items include:

• Bank Service charges – fees charged by the bank for account maintenance, transactions, or overdrafts.
• Deposit in transit – amounts deposited but not yet recorded by the bank.
• Cleared checks – checks that have been presented to the bank and the funds have been deducted from the account.
• NSF check (Non-Sufficient Funds) – a check that has been rejected because the account does not have enough funds to cover it.
• Interest paid by the bank – interest that the bank has credited to the account.

Items such as supplies expenses are not reasons for a difference between the bank statement and book balance because they are recorded by the depositor directly and do not affect the bank's records until payment is made (and cleared).