Classify Each of the Following Reconciling Items of the Tic

question 57

Multiple Choice

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

-Bank withdrew from Tic and Tac's account $1,100 for a cheque written for $110 ________

• 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:

Market Value

The market price at which an asset or service can be transacted currently.

Shares Outstanding

The total number of shares of a corporation that have been authorized, issued, and purchased by investors and are held by them.

Debt-Equity Ratio

A metric indicating the balance between shareholders' equity and debt in financing a company's assets.

Capital Spending

Expenditures by a business for acquiring or upgrading physical assets such as property, industrial buildings, or equipment.