When You Compare the General Ledger or Bank Account Transactions

question 15

Multiple Choice

When you compare the general ledger or bank account transactions report with the bank statement -

• A)both records reveal a balanced position
• B)all deposits made are recorded on the bank statement
• C)interest and monthly fee amounts are not able to be matched to the cash account
• D)all the cheques issued have been cashed by the bank

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Definitions:

Risk Reduction

Strategies or actions taken to decrease or mitigate the level of risk.

Expected Value

A statistical measure that calculates the average outcome of a random variable or process, factoring in all possible values and their probabilities.

Efficient Allocation

The distribution of resources in such a manner that it's impossible to improve anyone's condition without worsening someone else's.

Risk Diversified

The strategy of spreading investments across various assets to reduce exposure to risk in any single area.