In Preparing Its August 31, 2014 Bank Reconciliation, Acme Corp

question 102

Multiple Choice

In preparing its August 31, 2014 bank reconciliation, Acme Corp. has the following information available. At August 31, 2014, Acme's adjusted cash balance is

• A) $20,800.
• B) $20,200.
• C) $20,100.
• D) $18,500.

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Definitions:

Gross Pay

The total amount of an employee's earnings before any deductions are made, such as taxes and retirement contributions.

Biweekly Paycheck

A payroll schedule where employees receive wages every two weeks, resulting in 26 paychecks per year.

Checking Account

An account at a bank that allows a customer to deposit money and make withdrawals from the funds on deposit using a paper check or electronic transfer.

Flat Rate

A pricing strategy where a single fixed fee is charged for a service, regardless of usage or time.