In the Normal Operation of Business, You Receive a Check

question 39

Multiple Choice

In the normal operation of business, you receive a check from a customer and deposit it into your checking account. With your bank statement, you are advised that this check for $775 is "NSF." The bank also informs you that due to the amount of activity on your business account the monthly service charge is $75. During a bank reconciliation, you will

• A) subtract both values from balance according to bank
• B) add both values to balance according to books
• C) add both values to balance according to bank
• D) subtract both values from balance according to books

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Definitions:

Coupon

The interest rate paid by a bond, typically expressed as a percentage of the bond's face value.

Unlevered Cost

It involves the cost of funding a project or investment without any debt, reflecting the cost of capital that is equity financed.

Coupon

The yearly interest percentage paid on a bond, relative to its face value.

Tax Rate

The slice of income required as tax from businesses or individuals.