Charles Company Has Two Checking Accounts

question 73

Multiple Choice

Charles Company has two checking accounts. A special account is used for the weekly payroll only, and the general account is used for all other disbursements. Every week, a check in the amount of the net payroll is drawn on the general account and deposited in the payroll account. The company maintains a $5,000 minimum balance in the payroll account. On a monthly bank reconciliation, the payroll account should

• A) reconcile to $5,000.
• B) show a zero balance per the bank statement.
• C) show a $5,000 balance per the bank statement.
• D) be reconciled jointly with the general account in a single reconciliation.

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Definitions:

Homogeneous Group

A group comprised of members who have similar characteristics, background, or traits.

Developmental Group

A collection of individuals grouped together based on their developmental stage or progress.

Heterogeneous Group

A group composed of members with differing characteristics, such as age, gender, background, skills, and opinions.

Asynchronous Group

pertains to a group in which members interact and communicate without the necessity of being online at the same time, enabling participation according to individual schedules.