While Reconciling the Checking Account, the Accountant Noticed That an Error

question 190

Multiple Choice

While reconciling the checking account, the accountant noticed that an error had been made in recording a check received by the company. The bookkeeper had recorded the receipt as $729 but the correct amount of the check was $279. Which of the following reconciling adjustments is necessary?

• A)Add $450 to the company's records.
• B)Deduct $450 from the company's records.
• C)Add $450 to the bank statement balance.
• D)Deduct $450 from the bank statement balance.

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Definitions:

Interest Accrual

The process of recognizing interest expense or interest income that has been earned but not yet paid or received.

Earnings Per Share

A company's net profit divided by the number of its common shares outstanding, indicating the profitability on a per-share basis.

Net Income

The total profit of a company after all expenses, including taxes and operating costs, have been subtracted from total revenue.

Financing Alternatives

Different options available for a business or individual to fund their activities, including loans, equity investments, and leasing.