Osborn Company Assembled the Following Information in Completing Its March

question 24

Multiple Choice

Osborn Company assembled the following information in completing its March bank reconciliation: balance per bank $11,460; outstanding checks $2,325; deposits in transit $3,750; NSF check $240; bank service charge $75; cash balance per books $13,200. As a result of this reconciliation, Osborn will

• A) reduce its cash account by $1,425.
• B) reduce its cash account by $75.
• C) increase its cash account by $165.
• D) reduce its cash account by $315.

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Definitions:

Dividend Policy

A company's strategy in deciding the size and pattern of dividend distributions to its shareholders.

Associate Entity

An entity over which an investor has significant influence, typically through ownership of between 20% and 50% of voting stock.

Equity Recognition

The process in accounting of recognizing increases in ownership interests.

Share Capital

The funds raised by a company through the issuance of shares, representing the ownership interest invested by shareholders.