If a Check Correctly Written and Paid by the Bank

question 13

Multiple Choice

If a check correctly written and paid by the bank for $628 is incorrectly recorded on the company's books for $682, the appropriate treatment on the bank reconciliation would be to

• A)add $54 to the book's balance.
• B)subtract $54 from the book's balance.
• C)deduct $54 from the bank's balance.
• D)deduct $628 from the book's balance.

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Definitions:

Ending Balance

The final amount in an account at the end of a financial reporting period, after all adjustments have been made.

Work in Process Inventory

Goods that are in various stages of the production process but are not yet finished products.

Job-Order Costing

An accounting methodology used for tracking the production costs (materials, labor, and overhead) of custom products or jobs, allowing for detailed monitoring and costing of individual orders.

Ending Balance

The final amount in an account at the end of an accounting period after all debits and credits are accounted for.