Classify Each of the Following Reconciling Items of the Tic

question 179

Multiple Choice

Classify each of the following reconciling items of the Tic and Tac Company as:

-Bookkeeper recorded cheque #849 as $693 instead of the correct amount of $963 ________

• A)an addition to the bank balance
• B)a deduction from the bank balance
• C)an addition to the book balance
• D)a deduction from the book balance
• E)not a reconciling item

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Definitions:

Biological Assets

Living plants or animals that are used in agricultural activities from which agricultural produce is harvested, accounted for under specific accounting standards.

Fair Value

An estimate of the price at which an asset or liability could be exchanged in a current transaction between willing parties.

AASB 141

An Australian Accounting Standards Board standard that concerns agriculture, detailing the accounting for agricultural activity including the transformation of biological assets (living plants and animals) into agricultural produce.

IAS 41

The International Accounting Standard that deals with the accounting for agriculture, including the recognition and measurement of biological assets.