Anna Erroneously Records a Check Drawn for $385 as $835

question 52

Multiple Choice

Anna erroneously records a check drawn for $385 as $835.This error is adjusted on the bank reconciliation as a(n) :

• A) $450 addition to the cash balance per books.
• B) $385 addition to the cash balance per bank.
• C) $835 deduction from the cash balance per bank.
• D) $1,220 deduction from the cash balance per books.

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Definitions:

Cash Shortages

The situation where the cash on hand is less than the expected amount, often indicating errors or theft.

Accounts Payable

Liabilities of a business that represent amounts owed to creditors for goods and services purchased on credit.

Cash Account

An account that records all transactions involving cash inflows and outflows.

Cash Payments

Transactions where payment for goods, services, or obligations is made using physical currency or checks instead of digital means.