Cawthra Limited Gathered the Following Reconciling Information in Preparing Its

question 3

Multiple Choice

Cawthra Limited gathered the following reconciling information in preparing its June bank reconciliation: $$\begin{array} { | l | r | } \hline \text { Cash balance per books, June 30 } & \$ 12,000 \\\hline \text { Electronic collection of account } & 6,000 \\\hline \text { Outstanding cheques } & 9,000 \\\hline \text { Deposits in transit } & 4,500 \\\hline \text { Bank service charge } & 75 \\\hline \text { NSF cheque } & 1,200 \\\hline\end{array}$$ The adjusted cash balance per books at June 30 is

• A) $8,775.
• B) $12,000.
• C) $16,500.
• D) $16,725.

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Definitions:

Right Price

The optimal price point for a product or service, taking into account factors such as value to the customer, demand, and competition.

Consumer Demand

The desire and willingness of consumers to purchase goods and services at various price points.

Your Gut

Colloquial term referring to an individual's instinctive reaction or initial feelings about a decision or situation, often sans empirical evidence.

Inelastic Product

A product or service whose demand does not significantly change with variations in its price.