If the Bank Records a Deposit of $1,500 as $150

question 1

Multiple Choice

If the bank records a deposit of $1,500 as $150, the error should be shown on a bank reconciliation as an) :

• A)addition to the bank balance of $1,350.
• B)addition to the book balance of $1,350.
• C)deduction from the bank balance of $1,350.
• D)deduction from the book balance of $1,350.

---

Definitions:

Adjusted Cost

The net cost of an asset after adjustments for improvements, depreciation, or damage, providing a more accurate reflection of its current value.

Income Statement

A financial report detailing a firm's income, costs, and earnings during a designated time frame.

Adjusted Cost

A value that has been modified from its original cost to reflect changes due to various factors, such as depreciation or amortization.

Income Statement

A report showcasing a business's fiscal results during a particular accounting cycle, which includes information on income, costs, and profit.