Each term has to be labelled as either Step 1, 2, 3, or 4.

Knowledge Check 01 Match the term and the definition. TERM ces DEFINITION 1. Subtract outstanding checks from the bank balance. Compute the adjusted bank balance. 3. Enter the bank statement balance from the bank statement. 4. Add any unrecorded deposits to the bank balance. 5. Compute the adjusted book balance. 6. Add any unrecorded interest earned to the book balance. 7. Enter the company's book balance from its accounting records. 8. Subtract bank fees from the book balance