Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

7. Receivables and Investments

Types of Receivables

Financial Accounting

7. Receivables and Investments

Types of Receivables

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Multiple Choice

All of the following are deductions on a bank statement except:

Deposits in transit

Bank fees

Service charges

NSF (non-sufficient funds) checks

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Verified step by step guidance

Understand the context of the problem: A bank statement typically includes deductions (amounts subtracted from the account balance) and additions (amounts added to the account balance). The goal is to identify which item listed is not a deduction.

Review the listed options: Deposits in transit, Bank fees, Service charges, and NSF (non-sufficient funds) checks. Consider the nature of each item and whether it represents a deduction or addition on a bank statement.

Clarify the concept of 'Deposits in transit': These are deposits made by the account holder that have not yet been processed or cleared by the bank. They are not deductions but rather additions to the account balance once cleared.

Understand the other options: Bank fees, Service charges, and NSF checks are all deductions because they represent amounts subtracted from the account balance due to fees, charges, or returned checks.

Conclude that 'Deposits in transit' is the correct answer because it is not a deduction but an addition to the account balance once processed.