If the Balance on the Bank Statement Does Not Equal

question 182

Multiple Choice

If the balance on the bank statement does not equal the balance in the cash account, then it can be assumed that:

• A) The company has no errors in its records concerning the cash account.
• B) The bank has made errors in preparing the statement.
• C) The company has made errors in is records concerning the cash account.
• D) There will be items reconciling the difference.

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Definitions:

Inflationary Gap

The difference between the actual level of GDP and the potential GDP under full employment, indicating excess demand in the economy.

Government Spending

Total government expenditures on final goods and services, including salaries of public servants, public infrastructure, and other government activities.

Multiplier

A quantitative measure that indicates the proportional amount by which aggregate output is expected to increase following an injection of public spending or investment.

Multiplier

A factor by which an initial change in spending will alter total economic output by a greater amount.