If a Check That Was Outstanding on Last Period's Bank

question 99

Multiple Choice

If a check that was outstanding on last period's bank reconciliation was not among the cancelled checks returned by the bank this period,in preparing this period's reconciliation,the amount of this check should be:

• A)Added to the book balance of cash.
• B)Deducted from the book balance of cash.
• C)Added to the bank balance of cash.
• D)Deducted from the bank balance of cash.
• E)Ignored in preparing the period's bank reconciliation.

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Definitions:

Financing Profit

The profit generated from the difference between the cost of financing sources (such as loans) and the income generated from their use.

Inventory Cost

The total cost associated with obtaining, storing, and managing inventory, including purchase costs, storage costs, and any other expenses related to maintaining or handling inventory.

Leased Lathe

A contract arrangement where a lathe, a machine tool used for shaping metal or wood, is rented for use over a specific time period.

Credit-Approved Customers

Customers who have been evaluated and approved by a company to receive goods or services before payment, based on their creditworthiness.