In Reconciling a Bank Statement, the Bank Balance Is $1000

question 1

Multiple Choice

In reconciling a bank statement, the bank balance is $1000 and the chequebook balance is $1205. Which of the following is the MOST probable reason why the chequebook balance is larger than the bank balance?

• A)The bank has not cleared certain cheques.
• B)The bank has added interest revenue to the account balance.
• C)A deposit in transit was made at the end of the month.
• D)The bank received an EFT from a customer.

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Definitions:

Equitable Remedy

A legal remedy granted by courts to provide fair resolution, such as injunctions or specific performance, rather than monetary compensation.

Specific Performance

A legal remedy requiring a party to fulfill their obligations under a contract, rather than merely compensating the other party with damages.

Promissory Note

An economic tool involving a formal commitment from one entity to another to remit a specific amount of cash, payable either upon request or on a predetermined date in the future.

Third-party Complaint

A legal document filed in a lawsuit by a defendant who believes that a third party (not currently involved in the lawsuit) is partially or fully responsible for the claim filed by the plaintiff.