In Comparing the Canceled Checks on the Bank Statement with the Entries

question 188

Multiple Choice

In comparing the canceled checks on the bank statement with the entries in the accounting records,it is found that check number 4239 for November's rent was correctly written and drawn for $3,790 but was erroneously entered in the accounting records as $7,390.When reconciling the November bank statement,the company should:

• A)Deduct $3,600 from the book balance of cash.
• B)Add $3,700 to the bank statement balance.
• C)Add $7,390 to the book balance of cash.
• D)Deduct $3,600 from the bank statement balance.
• E)Add 3,600 to the book balance of cash.

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Definitions:

Marginal Cost Curve

A graphical representation showing how the cost of producing one additional unit of a good varies as the quantity of production increases.

Industry Supply Curve

A graphical representation that shows the relationship between the price of a good and the total output of the industry over a range of prices.

Economic Profits

The variance between the sum of earnings and the sum of expenditures, encompassing both direct and indirect costs.

Industry Supply Curve

A graphical representation that shows the relationship between the price of a good and the total output of that good by all firms in the industry.