Calculate, from the Following Information Accumulated by Bob Verna, the Adjusted

question 160

Multiple Choice

Calculate, from the following information accumulated by Bob Verna, the adjusted cash balance at the end of July. Bank statement ending cash balance $6,000
General ledger cash balance ending 8,500
Bank monthly service charge 90
Deposits in transit 5,000
Outstanding cheques 3,000
NSF cheque returned with bank statement 410

• A) $6,000
• B) $8,500
• C) $8,000
• D) $11,000

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Definitions:

Framing

The way information or issues are presented and the effect this presentation has on perception and decision-making.

Availability

In psychology, it refers to the ease with which a particular thought or memory can be accessed from memory, often influencing judgments and decision-making.

Representativeness

A cognitive heuristic where an individual categorizes a situation based on how similar it is to the typical case or to their standard representation of such a case.

Heuristics

Mental shortcuts or rules of thumb that simplify decision making, often used unconsciously to make judgments and solve problems quickly.