The Bank Statement of a Business Shows an Overdraft of $10

question 54

Multiple Choice

The bank statement of a business shows an overdraft of $10 000 at 31 March. In reconciling the account at that date indicate the treatment you would give to cheque no. 461 for $30 that was drawn on 25 March but had not yet been presented for payment.

• A) Subtract from the bank statement balance in the bank reconciliation.
• B) Add to the bank statement balance in the bank reconciliation.
• C) Record in the cash receipts journal.
• D) Record in the cash payments journal.

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Definitions:

Restaurant Market

The sector of the economy that deals with the demand and supply of food services offered in settings like cafes, diners, and upscale eateries.

Profit-Maximizing Price

Profit-Maximizing Price is the optimal selling price for a product or service at which a company can achieve the maximum possible profit, balancing between higher prices and the volume of sales.

Restaurant Market

The segment of the economy that includes establishments and services involved in preparing meals, snacks, and beverages for immediate consumption.

Many Firms

A market situation where there are a large number of sellers, offering a variety of products.