Which of the following items is typically documented on a bank statement provided to a company?

• A. Company's book balance
• B. Outstanding checks
• C. Bank service charges
• D. Deposits in transit

Answer: (C)

Verified step by step guidance

1. Understand the purpose of a bank statement: A bank statement is a document provided by a bank to its account holders, summarizing the transactions and balances in their account over a specific period.
2. Identify the items typically included in a bank statement: Bank statements generally include details such as deposits, withdrawals, checks cleared, bank service charges, and the ending balance.
3. Clarify the items listed in the problem: The options provided include 'Company's book balance,' 'Outstanding checks,' 'Bank service charges,' and 'Deposits in transit.'
4. Analyze each option: 'Company's book balance' and 'Deposits in transit' are not documented on a bank statement because they are part of the company's internal records. 'Outstanding checks' are checks issued by the company but not yet cleared by the bank, so they are also not part of the bank statement. 'Bank service charges,' however, are fees charged by the bank and are typically documented on the bank statement.
5. Conclude that the correct answer is 'Bank service charges,' as this is the item typically documented on a bank statement provided to a company.