Which of the Following Reconciling Items Would Require an Adjusting

question 93

Multiple Choice

Which of the following reconciling items would require an adjusting journal entry on the company's books?

• A)outstanding checks
• B)Nonsufficient funds checks
• C)deposits in transit
• D)cash on hand

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Definitions:

Classical Economists

Economists of the 18th and 19th centuries who believed in free markets, minimal government intervention, and the self-regulating nature of economies.

Stable Economy

An economic condition characterized by predictability, low inflation, and minimal unemployment, indicating a healthy economic environment.

Say's Law

An economic theory proposing that supply creates its own demand, meaning production inherently creates the means to purchase other goods.

Keynesian Theory

Keynesian Theory is an economic theory stating that government intervention through fiscal and monetary policy is necessary to manage aggregate demand and address economic cycles.