In Reconciling the Bank Balance, an Unrecorded Debit Memorandum for Printing

question 110

Multiple Choice

In reconciling the bank balance, an unrecorded debit memorandum for printing cheques should be

• A) Noted as a memo
• B) Added to the book balance of cash
• C) Deducted from the book balance of cash
• D) Added to the bank balance of cash
• E) Deducted from the bank balance of cash

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Definitions:

Subsidiary Asset

Assets that are owned by a subsidiary, which is a company controlled by another company (the parent).

Share Issue Costs

Expenses that a company incurs when issuing new shares, such as legal fees, accounting fees, and underwriting fees.

Fair Value

The projected proceeds from the sale of an asset or the financial burden of transferring a liability in a harmonious transaction between entities in the market at the date of measuring.

Loans Payable

Obligations of a company to repay borrowed money in the future.