In Reconciling a Bank Statement, the Bank Balance Is $1

question 17

Multiple Choice

In reconciling a bank statement, the bank balance is $1 800 and the chequebook balance is $1 205. Which of the following is the MOST probable reason why the bank balance is larger than the book balance?

• A)The bank has deducted certain amounts for bank service charges.
• B)There are outstanding cheques.
• C)The company erroneously recorded a cheque for an amount less than actual.
• D)A deposit in transit was made at the end of the month.

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Definitions:

Indifference Curve

A graphical representation showing combinations of goods or services among which a consumer is indifferent, meaning they have no preference for one combination over another, holding utility constant.

Absolute Value

The non-negative value of a number without regard to its sign.

Slope

In mathematics and economics, the measure of the steepness or incline of a line, indicating the rate of change of one variable with respect to another.

Indifference Curves

A graph showing different bundles of goods between which a consumer is indifferent, illustrating preferences and trade-offs.