Which of the Following Items Would Require an Adjusting Entry

question 116

Multiple Choice

Which of the following items would require an adjusting entry after preparation of the bank reconciliation?

• A) errors made by the bank revealed by the bank reconciliation
• B) all items on the bank's side
• C) errors made on the books revealed by the bank reconciliation
• D) outstanding checks

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Definitions:

Common Stock

Represents ownership shares in a corporation, giving holders voting rights and a residual claim on the company's assets and earnings.

Stockholders

Individuals or entities that own one or more shares of stock in a corporation, thus holding a portion of the company's equity.

Journal Entry

A record in the accounting books that notes all the financial transactions of a business.

Accounts Receivable

Money owed to a business by its clients (customers) resulting from the sale of goods or services on credit.