Question

a bank statement computes an accounts ending balance by adding all ______ to the beginning balance.

a. amounts of cash purchases

b. withdrawals and debits

c. deposits and credits

d. amounts of cancelled checks

Explanation:

To determine the correct option, we analyze each choice:

• Option A: Cash purchases are expenses and would decrease the balance, not be added to the beginning balance.
• Option B: Withdrawals and debits reduce the account balance, so they are subtracted, not added.
• Option C: Deposits (adding money to the account) and credits (which often represent increases in the account, like interest or refunds) are added to the beginning balance to get the ending balance.
• Option D: Cancelled checks are related to withdrawals or debits, which decrease the balance, so they are not added.

Answer:

C. deposits and credits