While Preparing the Bank Reconciliation, You Notice That a Check

question 171

Multiple Choice

While preparing the bank reconciliation, you notice that a check, written by the company for $750, has been outstanding for 5 months.What is the best action for you to take?

• A)Void the check.If it has not been cashed in 5 months, it will never be cashed.
• B)Issue a replacement check because you assume the original check has been lost.
• C)Wait 3 more months to give the bank more time to clear the check.
• D)Investigate to determine why the check has not cleared.

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Definitions:

Work In Process

This term is often used interchangeably with Work In Progress, denoting goods that are partially completed in the manufacturing process.

Equivalent Unit Calculations

A method in cost accounting used to allocate costs to partially completed goods, converting them into the amount of finished goods units.

Manufacturing Costs

Expenses related to producing goods, including direct materials, direct labor, and manufacturing overhead.

Weighted Average Method

A method of calculating the average cost of inventory goods by weighting the cost of each item according to its proportion in the total inventory.