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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Definitions:

Acquisition

The process of obtaining control of another company or asset through purchase or merger.

Antitrust Regulations

Laws and regulations designed to promote competition and prevent monopolies by prohibiting business practices that restrict or control trade and market dominance.

Divest

The process of selling off subsidiary business interests or investments as a strategic move for a company.

Newly Merged Firm

A company that has recently combined with another entity in a merger, pooling their resources, operations, and strategies to form a single, larger organization.