For Which of the Following Errors Should the Appropriate Amount

question 147

Multiple Choice

For which of the following errors should the appropriate amount be subtracted from the balance per bank on a bank reconciliation?

• A) Check for $63 recorded as $36.
• B) Deposit of $600 recorded by bank as $60.
• C) A returned $300 check recorded by bank as $30.
• D) Check for $75 recorded as $57.

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Definitions:

Adjusting Entries

Entries recorded in financial journals at the conclusion of an accounting period for the purpose of assigning earnings and expenditures to their rightful period.

Work Sheet

A document or tool used in accounting to gather information and perform calculations for preparing financial statements and other reports.

Retained Earnings

The portion of a company's profits not distributed as dividends but retained for reinvestment in the business or to pay off debt.

Income Summary

An account used in the closing process during the accounting cycle that sums up all revenues and expenses for the period to determine the net income or loss for the period.