If the Balance on the Bank Statement Does Not Equal

question 182

Multiple Choice

If the balance on the bank statement does not equal the balance in the cash account, then it can be assumed that:

• A) The company has no errors in its records concerning the cash account.
• B) The bank has made errors in preparing the statement.
• C) The company has made errors in is records concerning the cash account.
• D) There will be items reconciling the difference.

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Definitions:

Dividend Yield Ratio

A financial ratio that indicates how much a company pays out in dividends each year relative to its share price.

Cash Dividends

Payments made by a corporation to its shareholders from earnings, typically in the form of cash.

Market Price

The existing rate at which an asset or service is traded in the open market.

Return on Total Assets

A financial ratio that measures a company's ability to generate earnings from its assets, indicating the effectiveness of asset use.