1. When preparing a bank reconciliation, deposits in transit are: a. added to the balance per bank statement. b. subtracted from the balance per bank statement. c. added to the balance per company records. d. subtracted from the balance per company records.

2. Goods available for sale is equal to: a. ending inventory plus beginning inventory. b. beginning inventory, plus net purchases, minus ending inventory. c. net purchases plus beginning inventory. d. costs of goods sold minus beginning inventory.