All of the Following Are Items That Cause a Difference

question 152

Multiple Choice

All of the following are items that cause a difference between the bank balance and the book balance except:

• A)cancelled cheques.
• B)deposits in transit.
• C)outstanding cheques.
• D)NSF cheques.

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Definitions:

Statute of Frauds

A legal principle that requires certain types of contracts (e.g., real estate transactions, contracts not to be performed within a year) to be in writing and signed by the parties to be enforceable.

Credit

A contractual agreement in which a borrower receives something of value now and agrees to repay the lender at a later date, generally with interest.

Receipt

A written acknowledgment that something of value has been transferred from one party to another.

Statute of Frauds

A rule of law that mandates specific contract types to be documented in writing and signed by the accountable party for them to be valid and enforceable.