12. On a bank reconciliation, deposits in transit are A) added to the bank balance. B) deducted from the bank balance. C) added to the book balance. D) deducted from the book balance. 13. A bank reconciliation should be prepared A) whenever the bank refuses to lend the company money. B) when an employee is suspected of fraud. C) to explain any difference between the depositor's balance per books and the balance per bank. D) by the person who is authorized to sign checks. 14. Bank errors A) occur because of time lags. B) must be corrected by debits. C) are infrequent in occurrence. D) are corrected by making an adjusting entry on the depositor's books. 15. An adjusting entry is not required for A) outstanding checks. B) collection of a note by the bank. C) NSF checks. D) bank service charges. 16. Claims for which formal instruments of credit are issued as proof of the debt are A) accounts receivable. B) interest receivable. C) notes receivable. D) other receivables. 17. Three accounting issues associated with accounts receivable are A) depreciating, returns, and valuing. B) depreciating, valuing, and collecting. C) recognizing, valuing, and disposing. D) accrual, bad debts, and disposing