If a Check Correctly Written and Paid by the Bank

question 91

Multiple Choice

If a check correctly written and paid by the bank for $537 is incorrectly recorded on the company's books for $573, the appropriate treatment on the bank reconciliation would be to

• A)add $36 to the bank's balance.
• B)add $36 to the book's balance.
• C)deduct $36 from the bank's balance.
• D)deduct $537 from the book's balance.

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Definitions:

Sales Revenue

Income generated from selling goods or services over a period, critical for determining a company's profitability.

Gross Profit

The financial gain calculated by subtracting the cost of goods sold from the revenue generated from sales of those goods.

Operating Expenses

Costs associated with the day-to-day operations of a business such as rent, salaries, and utilities.

Revenues

Income generated from normal business operations and includes discounts and deductions for returned merchandise.