While Reconciling the Checking Account, an Accountant with Elliter, Inc

question 91

Multiple Choice

While reconciling the checking account, an accountant with Elliter, Inc. noticed that an error had been made in recording a check received by the company. Elliter recorded the receipt as $729 and the correct amount of the check was $279. Which of the following reconciling adjustments is necessary?

• A) Add $450 to the company's records.
• B) Deduct $450 from the company's records.
• C) Add $450 to the bank statement balance.
• D) Deduct $450 from the bank statement balance.

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Definitions:

Inputs

The resources (such as labor, raw materials, and capital) used in the production process to create goods or services.

Resources

Assets, materials, and inputs used to produce goods and services.

Input Market

The market where resources or inputs such as labor, materials, and capital are bought and sold, allowing businesses to produce goods and services.

Households

Entities consisting of one person or a group of people who share living accommodations and make joint or separate decisions in consumption and investment.