If a Check Correctly Written and Paid by the Bank

question 107

Multiple Choice

If a check correctly written and paid by the bank for ¥4,710 is incorrectly recorded on the company's books for ¥4,170, the appropriate treatment on the bank reconciliation would be to

• A) add ¥540 to the book's balance.
• B) subtract ¥540 from the book's balance.
• C) deduct ¥540 from the bank's balance.
• D) deduct ¥4,710 from the book's balance.

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Definitions:

Interorganizational

Pertaining to interactions or relationships between different organizations.

ERP System

Enterprise Resource Planning system, a software platform used by organizations to manage day-to-day business activities such as accounting, procurement, project management, and manufacturing.

FAIS

The Financial Advisory and Intermediary Services Act, a regulation aiming to protect consumers by regulating financial service providers in certain jurisdictions.

Lack of Communication

A situation where insufficient or ineffective exchange of information leads to misunderstandings or conflicts.