Which of the following bank reconciliation items is correctly described?

A.Deposits in transit increase the book side of the reconciliation.

B.NSF checks increase the book side of the reconciliation.

C.Outstanding checks decrease the bank side of the reconciliation.

D.Service charges decrease the bank side of the reconciliation.

1. Which of the following is an example of a good internal control for the credit department?

A. Employees who grant credit to customers should not also evaluate customer financial position.

B. Employees who handle cash receipts should not also grant credit to customers.

C. Only employees who are responsible for billing customers should also grant credit to customers.

D. All of these are good internal controls for the credit department.