Which of the following items typically appear on the bank side of a bank reconciliation?

• A. Deposits in transit
• B. NSF (non-sufficient funds) checks
• C. Bank service charges
• D. Outstanding checks

Answer: (D)

Verified step by step guidance

1. Understand the concept of bank reconciliation: Bank reconciliation is the process of comparing the bank statement with the company's accounting records to identify discrepancies and ensure accuracy.
2. Identify the two sides of a bank reconciliation: The 'bank side' refers to adjustments made to the bank statement, while the 'book side' refers to adjustments made to the company's accounting records.
3. Determine which items affect the bank side: Items that typically appear on the bank side include deposits in transit (deposits recorded by the company but not yet reflected in the bank statement) and outstanding checks (checks issued by the company but not yet cleared by the bank).
4. Clarify items that do not affect the bank side: NSF checks and bank service charges are adjustments made to the book side because they are recorded by the bank but not yet reflected in the company's accounting records.
5. Conclude that deposits in transit and outstanding checks are the items that typically appear on the bank side of a bank reconciliation, as they represent timing differences between the company's records and the bank statement.