Clark Company Developed the Following Reconciling Information in Preparing Its

question 39

Multiple Choice

Clark Company developed the following reconciling information in preparing its September bank reconciliation: $\begin{array}{lr}\text { Cash balance per bank, } 9 / 30 & \$ 46,200 \\\text { Note receivable collected by bank } & 25,200 \\\text { Outstanding checks } & 37,800 \\\text { Deposits in transit } & 18,900 \\\text { Bank service charges } & 315 \\\text { NSF check } & 5,040\end{array}$ Using the above information, determine the cash balance per books (before adjustments) for the Clark Company.

• A)$41,055.
• B)$65,100.
• C)$7,455.
• D)$63,000.

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Definitions:

Processing Time

The amount of time required to complete a specific process or task, often related to manufacturing or computational operations.

Preauthorized Payment

A financial arrangement that allows a business or individual to automatically debit funds from a customer's bank account for recurring expenses.

Total Collection Time

The period it takes for a business to convert its credit sales into cash, encompassing the entire process from sale to cash collection.

Cash Management

The process of collecting, managing, and investing a company's cash flow in a way that maintains or increases the company's liquidity.