Question

A company deposited $1000 into its bank account at the end of the month, but the bank statement does not show the deposit. This $1000 is an example of:

a) Outstanding Deposit
b) Outstanding Check
c) Bank Reconciliation
d) Deposit in Transit

Answer 1

The $1000 deposit that does not show on the bank statement is an example of a Deposit in Transit.

Step-by-step explanation:

The $1000 deposit that was made by the company but does not show on the bank statement is an example of a Deposit in Transit. It refers to a deposit that has been made but has not yet been recorded by the bank. This often occurs when a deposit is made towards the end of the month and takes time to be processed by the bank.