When Reconciling the Ledger with the Bank Statement (Assuming a Positive

question 18

Multiple Choice

When reconciling the ledger with the bank statement (assuming a positive bank balance) a returned (dishonoured) cheque should be:

• A) subtracted from the general ledger bank balance.
• B) ignored as the bank will adjust the statement in the next period.
• C) subtracted from the bank statement balance.
• D) added to the bank statement balance in the reconciliation.

---

Definitions:

Unemployment

The situation in which individuals who are capable of working and are actively seeking work remain un-hired.

Money Growth

The increase in the amount of money in an economy over time.

Unemployment Compensation

Financial payments provided to individuals who have lost their jobs until they find new employment.

Consumption Expenditures

The total amount spent by consumers on goods and services for personal use, often considered a major component of gross domestic product (GDP).