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

question 67

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.)
-Customer's check was deposited on May 31 but is not included on the bank statement

• 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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Definitions:

Long-Run Equilibrium

A state in which all factors of production and costs are variable, allowing firms to make adjustments and the economy to achieve a steady state of operations with no tendency for change.

Product Differentiation

The process of distinguishing a product or service from others, to make it more attractive to a particular target market.

Economic Profits

The difference between a firm's total revenues and its total costs, including both explicit and implicit costs.

Normal Profits

The level of profit that is necessary for a company to remain competitive in the market, often seen as the minimum acceptable return.