If the Bookkeeper Mistakenly Records a Deposit of $360 as $630

question 38

Multiple Choice

If the bookkeeper mistakenly records a deposit of $360 as $630, the error would be shown on the bank reconciliation statement as a:

• A) $270 addition to the bank balance
• B) $270 deduction from the book balance
• C) $270 addition to the book balance
• D) $270 deduction from the bank balance

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Definitions:

Inelastic Demand

Refers to a situation where demand for a product does not significantly change with a change in the product's price.

Higher Price

A situation where the cost of a good or service is increased beyond its standard or previous rate.

Economic Profit

The difference between total revenue and total costs, including both explicit and implicit costs, indicating the financial gain exceeding opportunity costs.

Marginal Revenue

The extra revenue received from the sale of an additional unit of a product or service.