Question

When reconciling or balancing your checking account, which of the following correctly describes the math?

A) add withdrawals and fees, subtract deposits
B) add deposits, subtract withdrawals and fees

Answer 1

B) add deposits, subtract withdrawals and fees

Step-by-step explanation:

A checking account is a deposit and saving account held in a financial institution, mostly a bank. The user or owner of the checking account is allowed to deposit and withdraw money as frequently as they deem necessary without incurring access fees.

Money held in a checking account is accessible using different ways, including debit cards, ATMs, and over the counter. When reconciling a checking account, one needs to subtract the sum of "money out" from "money in. "

"Money in" comprises mostly of deposits. "Money out" is the total of withdraws plus other bank charges levied to the account.