You Are Reconciling the Office Checking Account with the Bank

question 132

Multiple Choice

You are reconciling the office checking account with the bank statement that arrived this morning. After accounting for unrecorded deposits, checks, and debits, you find that the total in your practice records is $11,760 and the bank's total is $12, 160. What is the first thing you should do?

• A) Adjust the practice records to match the bank's total
• B) Call the bank and inform them of the error on the statement
• C) Review each item on the statement against your records to find the $400 difference
• D) Inform the physician that the books do not balance this month
• E) Ask the office manager to call the auditor to review the books

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Definitions:

Short-Run Aggregate Supply

The total supply of goods and services that firms in an economy are willing and able to produce over a short period, generally at existing price levels.

Price Level Expectations

Price level expectations refer to the anticipations of consumers, firms, and other economic actors regarding the future general price level in the economy, influencing their economic decisions.

Short-Run Aggregate-Supply Curve

A visual depiction that illustrates the link between the overall output of goods and services and the price level for production in the short-term.

Short-Run Economic Fluctuations

Variations in the pace of economic activity, typically characterized by changes in GDP, unemployment, and other indicators, happening over a short period.