Which Cash Reconciling Item Could Potentially Affect Either the Bank

question 1

Multiple Choice

Which cash reconciling item could potentially affect either the bank statement or the general ledger?

• A) Recording error
• B) Interest earned on notes held by the bank
• C) Outstanding deposit
• D) NSF checks

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Definitions:

Break Even

The point at which total costs and total revenues are equal, resulting in no net loss or gain.

Short Run

A period in which at least one factor of production is fixed and cannot be fully adjusted.

AVC Curve

The average variable cost curve, which shows how the unit variable cost of production changes with the level of output.

Profit-Maximizing

The process or strategy of adjusting production and pricing to achieve the highest possible profit margins for a business or firm.