Questions: Exam II - Chapters 4,5,6 i Which of the following is correct with respect to a bank reconciliation? Multiple Choice 58 Subtract interest earned from the bank's balance. Subtract the amount of a customer's NSF check from the company's balance. Add service fee to the company's balance. Add deposits outstanding to the company's balance.

The answer is: Subtract the amount of a customer's NSF check from the company's balance.

This is incorrect. Interest earned should be added to the company's balance, not subtracted from the bank's balance.

This is correct. When a customer's check is returned due to insufficient funds (NSF), the company must subtract this amount from its balance because the expected funds were not actually received.

This is incorrect. Service fees should be subtracted from the company's balance, not added.

This is incorrect. Deposits outstanding should be added to the bank's balance, not the company's balance, as they represent deposits that have been made but not yet recorded by the bank.