A Payment for $51 Is Incorrectly Recorded on the Checkbook

question 9

Multiple Choice

A payment for $51 is incorrectly recorded on the checkbook stub as $15. The $36 error should be shown on the bank reconciliation as:

• A) added to the balance per bank statement.
• B) deducted from the balance per bank statement.
• C) added to the balance per books.
• D) deducted from the balance per books.

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Definitions:

Disposable Income

Net financial resources for households to allocate towards spending and savings after income taxation.

Savings

The portion of income not spent on consumption of goods and services, often put aside for future use or investment.

Disposable Income

Financial assets available to households for expenditure and savings after income taxes.

Inventory Investment

The net change in physical inventory levels for businesses over a certain period, indicating how much companies are spending to stock goods.