If a Check Correctly Written and Paid by the Bank

question 206

Multiple Choice

If a check correctly written and paid by the bank for $428 is incorrectly recorded on the company's books for $482, the appropriate treatment on the bank reconciliation would be to

• A) add $54 to the bank's balance.
• B) add $54 to the book's balance.
• C) deduct $54 from the bank's balance.
• D) deduct $428 from the book's balance.

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Definitions:

Notice Period

The time frame that must pass between notifying one party of a contract's termination and the actual end of the contract.

Corporate Reorganization

The process of restructuring a company's business, legal, ownership, or operational structures, often to be more profitable or better organized.

Annual Salary

An annual salary is a fixed amount of money paid to an employee by an employer in return for work performed, calculated on a yearly basis.

Consumer Products

Goods that are intended for final consumption by individuals or households.