Which of the following statements is true regarding the recording of cash and checks on a deposit slip?

• A. Cash and checks are combined into a single total on the deposit slip.
• B. Only cash is listed on the deposit slip; checks are recorded elsewhere.
• C. Only checks are listed on the deposit slip; cash is not included.
• D. Cash and checks are listed separately on the deposit slip.

Answer: (D)

Verified step by step guidance

1. Understand the purpose of a deposit slip: A deposit slip is a document provided by a bank that allows customers to itemize the cash and checks they are depositing into their account. It serves as a record for both the customer and the bank.
2. Recognize the importance of separating cash and checks: Banks require cash and checks to be listed separately on the deposit slip to ensure accurate processing and reconciliation. This separation helps the bank verify the amounts and identify any discrepancies.
3. Identify the correct procedure for recording cash: On the deposit slip, there is typically a designated section where the total amount of cash being deposited is recorded. This ensures clarity and proper accounting of the cash deposit.
4. Identify the correct procedure for recording checks: Each check being deposited is usually listed individually on the deposit slip, including details such as the check number and amount. This allows the bank to track and process each check accurately.
5. Conclude that cash and checks are listed separately: Based on the standard practices of banks, cash and checks are itemized separately on the deposit slip to ensure proper documentation and processing. This is the correct answer to the problem.