For Which of the Following Errors Should the Appropriate Amount

question 68

Multiple Choice

For which of the following errors should the appropriate amount be subtracted from the balance per books on a bank reconciliation?

• A)Check written for $63, but recorded by the company as $36.
• B)Deposit of $600 recorded by the bank as $60.
• C)A returned $300 check recorded by the bank as $30.
• D)Check written for $57, but recorded by the company as $75.

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Definitions:

Minimum Cash Balance

Minimum Cash Balance is the lowest amount of cash that a company seeks to maintain in its accounts to ensure financial stability and meet immediate operational needs.

Credit Sales

Sales in which the customer is allowed to pay at a later date, typically used to increase sales volume.

Cash Collections

The process of gathering all payments or receivables from customers over a specific period.

Accounts Receivable

Money owed to a business by its customers for products or services that have been delivered or used but not yet paid for.