Which of the following transactions will not display on a Bank Reconciliation Report until cleared?

The reason checks written in a previous month will not display on a Bank Reconciliation Report until cleared relates to the nature of how checks are processed by the bank. When a check is issued, it is recorded in the accounting system but does not impact the bank statement until the payee presents the check to their bank for payment. This often results in a period where the check is outstanding, meaning it has yet to be cleared or cashed by the bank.

On the Bank Reconciliation Report, transactions that have been cleared—meaning they have been processed by the bank—will show alongside the account balance reflected in the bank statement. Until those checks are presented and cleared, they remain as outstanding transactions and will not be shown in the reconciliation report, which captures only transactions that have been processed in the bank's records for the given period.

In contrast, deposits made this month typically appear immediately in the bank statement and thus will be reflected in the reconciliation. Bank service fees and interest income are also considered transactions that are recorded by the bank and will appear on the report once they are processed. Therefore, the nature of how and when various transactions clear with the bank is crucial in determining their visibility in the Bank Reconciliation Report.