How Would Customer's NSF Checks Be Dealt with in a Bank

question 10

Multiple Choice

How would customer's NSF checks be dealt with in a bank reconciliation?

• A) Added to company's book balance
• B) Deducted from company's book balance
• C) Added to bank statement balance
• D) Deducted from bank statement balance

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Definitions:

Accounts Receivable Balance

The overall financial dues that customers owe a business for the receipt of goods or services which are unpaid.

Finance Charges

The cost of borrowing money, including interest and other fees, that a lender charges a borrower for the use of funds.

Accounts Receivable Period

The average number of days it takes a company to collect payment after a sale has been made.

Controller

A senior financial officer responsible for managing a company's accounting operations, including the production of periodic financial reports, maintenance of accounting records, and a comprehensive set of controls and budgets.