Which One of the Following Items Requires an Adjustment on the Bank

question 105

Multiple Choice

Which one of the following items requires an adjustment on the bank side of the bank reconciliation?

• A) interest earned
• B) a bank service charge
• C) a note collected by the bank
• D) deposits in transit

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Definitions:

Allocation Base

a criterion or measure used for distributing costs evenly across various departments or products.

Departmental Overhead Rate

The rate used to allocate indirect costs to specific departments, based on their share of the overhead expenses.

Machine Hours

A measure of the amount of time a machine is operated, used in calculating manufacturing costs and allocating expenses.

Baking Department

A specific section within a retail store, food service establishment, or manufacturing facility dedicated to producing baked goods.