If Before Reconciliation the Balance on the Bank Statement Does

question 180

Multiple Choice

If before reconciliation the balance on the bank statement does not equal the balance in the company's cash account:

• A)the bookkeeper made a mistake.
• B)the bank made a mistake.
• C)both the bank and the bookkeeper made a mistake.
• D)It is perfectly normal for the two balances to be different.

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Definitions:

Temporal Discounting

The tendency to value immediate rewards more highly than future rewards, leading to a preference for sooner over later outcomes.

Avoidance

A psychological mechanism or behavior aimed at steering clear from a specific stimulus or situation due to its perceived negative consequences.

Status Quo Bias

A cognitive bias that favors existing conditions or states of affairs, leading individuals to resist change.

Omission Bias

The tendency to judge harmful actions as worse, or less moral, than equally harmful omissions (inactions).