Accompanying the Bank Statement Was a Debit Memo for Bank

question 164

Multiple Choice

Accompanying the bank statement was a debit memo for bank service charges. On the bank reconciliation, the item is a (n)

• A) deduction from the balance per company's records
• B) addition to the balance per bank statement
• C) deduction from the balance per bank statement
• D) addition to the balance per company's records

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Definitions:

Supplementary Disclosure

Additional information provided in financial statements, beyond the basic requirements, to give more insight into a company's financial status and operations.

Contingent Liabilities

Liabilities that may occur depending on the outcome of an uncertain future event.

Capital Commitments

Obligations of a company to spend capital in the future on items such as property, plant, and equipment or other significant investments.

AASB 11

Australian Accounting Standard Board's directive concerning the financial reporting of interests in joint arrangements to ensure transparency and comparability.