The May Bank Statement for Tax Services Shows a Balance

question 66

Multiple Choice

The May bank statement for Tax Services shows a balance of $5,300,but the balance per books shows a cash balance of $6,980.Other information includes:
1) A check for $200 to pay the electric bill was recorded on the books as $20.
2) Included on the bank statement was a note collected by the bank for $400 plus interest of $30.
3) Checks outstanding totaled $260.
4) Bank service charges were $50.
5) Deposits in transit were $2,140.
Which item(s) should be subtracted from the balance per books?

• A)Deposits in transit
• B)Checks outstanding and bank service charge
• C)Bank service charge and the note collected by the bank
• D)None of the above is correct.

---

Definitions:

Strategic Plan

A deliberate document that outlines an organization's direction and goals over a specific period, providing a roadmap for achieving those objectives.

Chief Executive Officers

The highest-ranking executives in a company or organization, responsible for making major corporate decisions.

Grant Application

A formal request for financial support from a grant-making organization or agency.

Operating Costs

Expenses associated with the daily running of a business or organization, typically excluding costs associated with production or direct service delivery.