Tavarez Company Assembled the Following Information in Completing Its July

question 86

Multiple Choice

Tavarez Company assembled the following information in completing its July bank reconciliation: balance per bank $22,920; outstanding checks $4,650; deposits in transit $7,500; NSF check $480; bank service charge $150; cash balance per books $26,400. As a result of this reconciliation, Tavarez will

• A) reduce its cash account by $2,850.
• B) reduce its cash account by $150.
• C) increase its cash account by $330.
• D) reduce its cash account by $630.

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Definitions:

Marginal Tax Rate

The tax rate applied to the last dollar of income, representing the rate at which additional income is taxed.

Taxable Income

The portion of an individual’s or corporation's income that is subject to taxes by the government.

Average Tax Rate

The ratio of the total taxes paid to the overall income, found by dividing the aggregate amount paid in taxes by the total income.

Income Tax Schedule

A chart or formula used to determine the tax rate applied to various levels of income.