Karlin Company Gathered the Following Reconciling Information in Preparing Its

question 126

Multiple Choice

Karlin Company gathered the following reconciling information in preparing its April bank reconciliation: $\begin{array}{lr}\text { Cash balance per books, } 4 / 30 & \$ 17,600 \\\text { Deposits in transit } & 2,400 \\\text { Notes receivable and interest collected by bank } & 5,920 \\\text { Bank charge for check printing } & 200 \\\text { Outstanding checks } & 12,000 \\\text { NSF check } & 1,120\end{array}$ The adjusted cash balance per books on April 30 is

• A)$24,600.
• B)$23,520.
• C)$22,200.
• D)$24,440.

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Definitions:

Restrictive Covenants

Clauses in contracts that limit certain actions of the parties involved, often used in employment contracts and loan agreements to protect business interests.

Dividend Policy

A company's strategy or guideline on whether to retain its profits or distribute them to shareholders in the form of dividends, and at what frequency.

Dividend Practice

The policy a company follows in deciding the amount, timing, and manner of dividend distributions to its shareholders.

Corporate Dividend Preference

A feature of preferred stock entitling holders to receive dividends before any dividends can be distributed to common stockholders.