On the April 30 Bank Reconciliation, a Deposit Made by a Company

question 50

Multiple Choice

On the April 30 bank reconciliation, a deposit made by a company to its bank account on April 18 will likely appear as a(n)

• A)addition to the balance per books.
• B)deduction from the balance per books.
• C)deduction from the balance per bank.
• D)This will not affect the current period's bank reconciliation.

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Definitions:

Unamortized Premium

The portion of a bond premium that has not yet been amortized (gradually written off) over the period of the bond's life.

Face Value

The nominal or dollar value printed on a security or a bond, representing its legal value.

Instalment Payment

A method of payment whereby the total cost of a purchase is divided into smaller amounts, to be paid over a specified period of time.

Loan

Borrowed money that is expected to be paid back with interest over a set period of time.