Bank balance is $14,250, deposits in transit are $6,100, and outstanding checks are $2,875. What is reconciled cash?
Correct Answer
D) $17,475.
Reconciled cash is $14,250 + $6,100 - $2,875 = $17,475.
Why This Is the Correct Answer
Reconciled cash is $14,250 + $6,100 - $2,875 = $17,475.
Why the Other Options Are Wrong
Option A: $11,375.
$11,375 leaves out the $6,100 transit. The correct calculation is 14,250 + 6,100 - 2,875 = 17,475.
Option B: $5,275.
$5,275 subtracts the $6,100 transit instead of adding it. The correct calculation is 14,250 + 6,100 - 2,875 = 17,475.
Option C: $20,350.
$20,350 leaves out the $2,875 outstanding checks. The correct calculation is 14,250 + 6,100 - 2,875 = 17,475.
Reference Hint
Study anchor (closed-book): memorize Bank reconciliation from CSLB Law and Business Study Guide; CSLB 2026 Law Book / CSLB Law and Business Study Guide Business Finances; know the rule or calculation trigger without relying on exam-room lookup.
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