A bank statement shows ending balance 49,215, outstanding checks 4,985, and deposits in transit 3,692. What is the adjusted bank balance?

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Prepare for the NOCTI Financial and Investment Planning Test. Study with flashcards and multiple choice questions, each with detailed hints and explanations. Set yourself up for success!

Multiple Choice

A bank statement shows ending balance 49,215, outstanding checks 4,985, and deposits in transit 3,692. What is the adjusted bank balance?

Explanation:
Outstanding checks reduce the bank’s reported balance because those checks haven’t cleared yet, while deposits in transit increase it because they’ve been recorded by you but not by the bank. So adjust the ending bank balance by subtracting the outstanding checks and adding the deposits in transit: 49,215 − 4,985 = 44,230; 44,230 + 3,692 = 47,922. The adjusted bank balance is 47,922.

Outstanding checks reduce the bank’s reported balance because those checks haven’t cleared yet, while deposits in transit increase it because they’ve been recorded by you but not by the bank. So adjust the ending bank balance by subtracting the outstanding checks and adding the deposits in transit: 49,215 − 4,985 = 44,230; 44,230 + 3,692 = 47,922. The adjusted bank balance is 47,922.

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