Identify Whether Each of the Following Items Would Be (A)

question 5

Essay

Identify whether each of the following items would be (a) added to the book balance (b) deducted from the book balance in a bank reconciliation (c) added to the bank balance or (d) deducted from the bank balance.
1. Deposits in transit
2. Bank service charge
3. Collection of note and interest by bank on company's behalf
4. NSF check
5. Outstanding checks

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Definitions:

Marginal Revenue

The extra revenue earned by selling an additional unit of a product or service.

ATC

Stands for Average Total Cost, which is the sum of all costs (fixed and variable) divided by the quantity of output produced.

Economic Profit

The surplus remaining when total revenue is greater than total cost, including both explicit and implicit costs, often indicating a company's profitability.

Purely Competitive Seller

A seller in a market characterized by many buyers and sellers, free entry and exit, homogeneous products, and perfect information.