The Principal Reason for Reconciling the Cash Balance Per Books

question 57

Multiple Choice

The principal reason for reconciling the cash balance per books with the balance shown on the bank statement is to:

• A)determine the amount of cash in the account actually available to the entity.
• B)satisfy generally accepted accounting principles.
• C)verify the amount of petty cash on hand.
• D)determine whether or not the entity has issued an NSF check.

---

Definitions:

Consumer Surplus

The difference in the total expected payment consumers are ready to make for a good or service and their actual expenditures.

Producer Surplus

The difference between the actual amount received by sellers for a product and the least amount they would be willing to accept, representing the net benefit to producers.

Excess Supply

Occurs when the quantity of a good or service supplied is greater than the quantity demanded, often leading to a decrease in price.

Minimum Wage

The lowest legal salary that employers can pay their workers, established by government laws.