Which term describes a bank service charge shown on the bank statement?

• A. Debit memo
• B. Bank service charges
• C. Check printing charges
• D. Deposits in transit

Answer: (B)

Bank service charges are fees charged by the bank for its services and shown on the bank statement as a deduction from the account balance. This label appears directly on the statement and is the general term for such fees, covering items like monthly service fees or check printing charges. In bank reconciliation, these charges reduce the balance per bank, so they must be considered when aligning the bank’s balance with your books. A debit memo is related—it’s the bank’s notice of a charge—but the description of the charge on the statement itself is bank service charges. Deposits in transit are timing differences, not charges, and check printing charges are a specific example of bank service charges.