Z-Mart Made a Bank Deposit on September 30 That Did

question 11

Multiple Choice

Z-Mart made a bank deposit on September 30 that did not appear on September's bank statement. In preparing September's bank reconciliation, the company should:

• A)Deduct the deposit from the bank statement balance.
• B)Deduct the deposit from September's book balance and add it to October's book balance.
• C)Send the bank a debit memorandum.
• D)Add the deposit to the book balance of cash.
• E)Add the deposit to the bank statement balance.

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Definitions:

Financial Leverage

Employing borrowed funds to amplify the potential gains from an investment, while also elevating the likelihood of incurring losses.

ROA

Return On Assets indicates how efficiently a company utilizes its assets to generate profit, calculated as net income divided by total assets.

Total Assets

The total of everything of value owned by a company, including cash, investments, property, and equipment, as recorded on the balance sheet.

Operating Efficiency

A measure of how well a company uses its assets and liabilities internally to produce a profit.