In Reconciling the Bank Balance, the Amount of an Unrecorded

question 15

Multiple Choice

In reconciling the bank balance, the amount of an unrecorded bank service charge should be:

• A)Deducted from the bank balance of cash.
• B)Added to the book balance of cash.
• C)Deducted from the book balance of cash.
• D)Noted as a memo.
• E)Added to the bank balance of cash.

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Definitions:

Standard Costs

Estimated or predetermined costs of manufacturing, selling, and administering a product or service.

Expected Future Costs

Projected expenses that a company anticipates incurring in the pursuit of its future activities.

Unavoidable Waste

Waste that cannot be prevented due to the nature of the production process or operational constraints.

Normal Spoilage

The expected or inevitable waste and inefficiency in production processes that is considered acceptable.