Nolan Company Had Checks Outstanding Totaling $5,400 on Its June

question 7

Multiple Choice

Nolan Company had checks outstanding totaling $5,400 on its June bank reconciliation. In July, Nolan Company issued checks totaling $38,900. The July bank statement shows that $24,300 in checks cleared the bank in July. A check from one of Nolan Company's customers in the amount of $300 was also returned marked "NSF." The amount of outstanding checks on Nolan Company's July bank reconciliation should be

• A) $14,600.
• B) $20,000.
• C) $19,700.
• D) $9,200.

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Definitions:

Financial Press

Media outlets that provide news, analysis, and commentary on financial and economic subjects, including markets and business trends.

Bond Price

The market value of a bond, which fluctuates based on interest rates, credit quality, and the bond's time to maturity.

Times-Interest-Earned Ratio

A financial metric used to measure a company's ability to meet its debt obligations based on its earnings before interest and taxes (EBIT).

Debt-To-Equity Ratio

An economic indicator reflecting the balance between equity and debt in funding a corporation's resources.