Bank Errors

question 175

Multiple Choice

Bank errors

• A) occur because of time lags.
• B) must be corrected by debits.
• C) are infrequent in occurrence.
• D) are corrected by making an adjusting entry on the depositor's books.

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Definitions:

Pareto Optimal

A state of allocation of resources from which it is impossible to reallocate so as to make any one individual or preference criterion better off without making at least one individual or preference criterion worse off.

Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity of the good that suppliers are willing to sell.

Sales Tax

A tax imposed by governments on the sale of goods and services, typically calculated as a percentage of the purchase price.

Price

The amount of money required to purchase a good or service, often determined by the interaction of supply and demand.