In Reconciling the Bank Balance, the Amount of an Unrecorded

question 84

Multiple Choice

In reconciling the bank balance, the amount of an unrecorded bank service charge should be:

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

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Definitions:

Construction

Construction refers to the process of building, assembling, or creating infrastructure, buildings, and other physical structures through planning, design, and execution.

GAAP

Generally Accepted Accounting Principles, which are a set of accounting standards and principles used in the United States.

Successful-Efforts Method

An accounting approach used in the oil and gas industry where costs are capitalized only if they lead to successful finding of new oil or gas reserves.

Drilling

The process of creating holes in the earth's surface in preparation for the exploration or extraction of resources, such as oil and gas.