Which of the Following Items on a Bank Reconciliation Would

question 191

Multiple Choice

Which of the following items on a bank reconciliation would require an adjusting entry on the company's books?

• A)An error by the bank.
• B)Outstanding checks.
• C)A bank service charge.
• D)A deposit in transit.

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Definitions:

Reciprocal Services

Services exchanged between departments within an organization or between companies without direct monetary payment, often valued and accounted for through internal mechanisms.

ABC

An abbreviation for Activity-Based Costing, a method of costing that identifies activities in an organization and assigns the cost of each activity to all products and services according to the actual consumption by each.

Direct Method

A cash flow statement preparation method that shows the specific sources of operating cash receipts and payments, contrasting with the indirect method.

ABC

Activity-Based Costing, an accounting method that assigns costs to products and services based on the activities and resources used in their creation and delivery.