The Following Information Was Derived from the 2010 Accounting Records

question 60

Multiple Choice

The following information was derived from the 2010 accounting records of Beck Co.:

• A)$539,000.
• B)$534,000.
• C)$500,000.
• D)$470,000.

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Definitions:

Checks Cleared

The process by which banks verify and process the transfer of funds from the check writer's account to the recipient's account.

Bank Reconciliation

Bank reconciliation is the process of matching and comparing figures from the accounting records against those shown on a bank statement to ensure they are in agreement.

Outstanding Checks

Refers to checks that have been written and recorded in the accounting records but have not yet cleared the bank.

NSF Check

A check that a bank returns without honoring because the account on which it was drawn does not have sufficient funds.