Which of the Following Bank Reconciliation Items Would Be Reflected

question 86

Multiple Choice

Which of the following bank reconciliation items would be reflected in a journal entry?

• A) Error made by the bank
• B) Outstanding checks
• C) Bank service charges
• D) Deposit in transit

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Definitions:

Effective Interest Rate

The realized return on a bond or loan, taking into account the effect of compounding interest as opposed to the nominal rate.

Amortization

The process of spreading out a loan or intangible asset cost over its useful life, thereby reducing it on the balance sheet over time.

Journal Entry

A recording of a transaction or adjustment in the accounting ledger that includes the accounts and amounts to be debited and credited.

Bonds Payable

Long-term debt securities issued by corporations or governments, promising to pay the holder a specified amount of interest and to repay the principal at maturity.