Royal Machines Limited Gathered the Following Reconciling Information in Preparing

question 37

Multiple Choice

Royal Machines Limited gathered the following reconciling information in preparing its June bank reconciliation: The adjusted cash balance per books at June 30 is

• A)$ 8,775.
• B)$12,000.
• C)$16,500.
• D)$16,725.

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Definitions:

Explicit Costs

Direct, out-of-pocket payments for resources employed in the production of goods or services, such as wages, rent, and materials.

Wages

Monetary compensation paid by an employer to an employee in exchange for work performed.

Total Loss

The situation in which the cost of repairing a damaged asset exceeds its value, or when an asset is completely destroyed or lost.

Firm

An organization or business entity engaged in commercial, industrial, or professional activities.