In a Bank Reconciliation, an EFT Cash Payment Is

question 56

Multiple Choice

In a bank reconciliation, an EFT cash payment is:

• A)added to the bank balance.
• B)deducted from the bank balance.
• C)added to the book balance.
• D)deducted from the book balance.

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Definitions:

Capital Lease

A capital lease is a lease agreement that is structured so that the lessee effectively becomes the owner of the asset for accounting purposes, usually for long-term assets.

Lease Liability

An obligation representing the present value of future lease payments a lessee is committed to make under a lease agreement.

Cost of Capital

The rate of return that a firm must earn on its project investments to maintain its market value and attract funds.

Residual Value

The estimated value that an asset will realize upon its sale at the end of its useful life.