Kline Company Had Checks Outstanding Totaling $19,200 on Its May

question 187

Multiple Choice

Kline Company had checks outstanding totaling $19,200 on its May bank reconciliation. In June, Kline Company issued checks totaling $119,700. The July bank statement shows that $89,100 in checks cleared the bank in July. A check from one of Kline Company's customers in the amount of $900 was also returned marked "NSF." The amount of outstanding checks on Kline Company's July bank reconciliation should be

• A) $58,800.
• B) $30,600.
• C) $49,800.
• D) $10,400.

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Definitions:

Net Cash Flow

The variance between the cash coming into and going out of a business within a set timeframe.

Compound Interest

The calculation of interest on the initial principal, which also includes all of the accumulated interest from previous periods on a deposit or loan.

Present Value

The current worth of a future sum of money or stream of cash flows, given a specified rate of return, reflecting the time value of money.

Earnings Rate

The rate at which an investment or savings account generates income over a specific period of time.