The Bank Charged a Service Fee of $20

question 149

Multiple Choice

The bank charged a service fee of $20. How would this information be included on the bank reconciliation?

• A)A deduction on the book side
• B)An addition on the book side
• C)An addition on the bank side
• D)A deduction on the bank side

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Definitions:

Sales Mix

Sales mix refers to the proportion of different products or services sold by a company, impacting its overall profitability and performance.

Fixed Costs

Expenses that remain constant regardless of business activity levels, including property leases and managerial salaries.

Contribution Margin Ratio

A financial metric that indicates what percentage of sales revenue remains after variable costs are subtracted to cover fixed expenses.

Sales Mix

Refers to the proportion of different products or services that a company sells, aimed at maximizing profitability.