Nilson Company Gathered the Following Reconciling Information in Preparing Its

question 203

Multiple Choice

Nilson Company gathered the following reconciling information in preparing its August bank reconciliation: The adjusted cash balance per books on August 31 is

• A) $24,960.
• B) $24,060.
• C) $13,800.
• D) $14,760.

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Definitions:

Contribution Margin Ratio

A financial metric that shows the percentage of sales revenue that exceeds variable costs, contributing to covering fixed costs and generating profit.

Profit-volume Ratio

A measure that indicates the relationship between the profit generated by a business and its sales volume, usually expressed as a percentage.

Property Tax Rates

The percentage at which local governments tax the value of real estate properties.

Fixed Costs

Expenses that do not change in total regardless of the level of production or sales volume, such as rent or insurance.