The Following Information Was Extracted from the Accounting Records of Hemingway's

question 21

Multiple Choice

The following information was extracted from the accounting records of Hemingway's Company: $\begin{array}{ll}\text { Beginning Paid- In Capital } & \$ 87,000 \\\text { Beginning R etained Earnings } & \$ 211,000 \\\text { Beginning As sets } & \$ 455,000\end{array}$ During the period assets increased by $150,000, revenues were $200,000, and expenses were $165,000. No additional investments were made by the owners. The amount of Hemingway Company's liabilities at the beginning of the period is:

• A) $157,000
• B) $224,000
• C) $331,000
• D) $579,000

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Definitions:

Bank Reconciliation

Bank reconciliation is the process of matching and comparing an entity’s bank account records to its financial statements.

Cashier Deposits

Refers to the funds that cashiers collect and deposit into the business's bank account, typically part of daily sales transactions.

Bonded Employees

Employees who have been guaranteed by a bonding company against theft or misconduct, offering protection to the employer.

Cash Over and Short

An account that records any discrepancies between physical cash and the recorded amount, used to track overages and shortages.