Which of the Following Is NOT a Reconciling Item When

question 13

Multiple Choice

Which of the following is NOT a reconciling item when preparing a bank reconciliation?

• A) bank service charges not recorded by the corporation
• B) outstanding cheques
• C) interest collected on a note receivable by the bank and recorded by the corporation
• D) outstanding deposits

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Definitions:

Interest Expense

The cost incurred by an entity for borrowed funds, representing the interest payments made on any borrowed capital.

Tax Rate

is the percentage at which an individual or corporation is taxed by the government.

Average Sale Period

The average sale period measures the average amount of time it takes for a business to convert its inventory into sales.

Cost of Goods Sold

The total cost of manufacturing and delivering a product to customers, typically including material, labor, and overhead expenses.