The Accountant for a Local Manufacturing Company Is Reconciling the Company’s

question 70

Multiple Choice

The accountant for a local manufacturing company is reconciling the company’s bank account for May. For each item listed, state how it would be handled on a bank reconciliation. (Choices may be used more than once.)
-Bank service charge on the bank statement for new checks

• A)Addition to bank balance
• B)Subtraction from bank balance
• C)Addition to company balance
• D)Subtraction from company balance
• E)Not included on the reconciliation

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A derivative contract through which two parties exchange financial instruments, such as interest rates, commodities, or foreign exchange.

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