Which of the Following Items Does NOT Cause a Difference

question 90

Multiple Choice

Which of the following items does NOT cause a difference in the bank balance and the book balance on a bank reconciliation?

• A)Canceled cheques
• B)Dishonoured cheques
• C)Deposits in transit
• D)Outstanding cheques

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Definitions:

Stock Investments

Financial assets consisting of shares in companies, representing ownership and possibly entitling the shareholder to dividends.

Debt Investments

Financial assets involving the loan of money by an investor to a borrower, typically with the expectation of receiving interest income in addition to principle repayment.

Equity Method

An accounting technique used to record investments in other companies, where the investment is accounted for based on the investor’s share of the investee's equity.

Stock Investments

Financial assets consisting of stakes in companies through the purchase of common or preferred stock shares, with the expectation of earning dividends or capital gains.