If the Balance on the Bank Statement Does Not Equal

question 114

Multiple Choice

If the balance on the bank statement does not equal the balance in the company's Cash account, then you can conclude that:

• A) the bank made an error
• B) both the company accountant and the bank made errors
• C) the company accountant made an error in the accounting process
• D) there are some reconciling items that, when identified, will explain the differences between the balances

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Definitions:

Increase in Demand

A situation where there is a rise in the quantity of a product or service that consumers are willing and able to purchase at existing prices.

Inferior Good

A type of good whose demand decreases as the income of the consumer increases, opposite to what happens with normal goods.

Normal Good

A type of good for which demand increases as the income of the consumer increases.

Normal Good

A good whose demand increases as consumers' income rises, holding all other factors constant.