Which of the Following Would not Be Subtracted from the Balance

question 184

Multiple Choice

Which of the following would not be subtracted from the balance per books on a bank reconciliation?

• A)Outstanding checks.
• B)NSF checks.
• C)Check printing charge.
• D)Service charges.

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Definitions:

Portfolio Theory

A financial model that describes how to assemble a diversified portfolio to maximize returns and minimize risk based on expected returns and the variance of each asset.

Capital Budgeting

The process by which investors and managers evaluate the long-term investments and projects of a company in terms of their potential profitability and benefits.

Probability Distribution

A probability distribution is a statistical function that describes all the possible values and likelihoods that a random variable can take within a given range.

NPV

Net Present Value; a method used in capital budgeting to evaluate the profitability of an investment or project, calculating the net difference between present value of cash inflows and outflows over a period.