In Preparing a Bank Reconciliation Statement for a Business with a Substantial

question 34

Multiple Choice

In preparing a bank reconciliation statement for a business with a substantial bank balance,the appropriate treatment for $650 that a customer paid directly into the company's bank account is to:

• A) add it to the balance as per bank statement.
• B) deduct it from the balance as per bank statement.
• C) add it to the balance per company records.
• D) deduct it from the balance per company records.

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Definitions:

Equal Amounts

Identical quantities or measures of something, having the same value or size.

Utility Function

A representation of a consumer's preferences, indicating the level of satisfaction derived from various bundles of goods and services.

Units of X

Specific measures or quantities of a given variable or product X.

Price of X

The cost associated with acquiring a unit of good or service X.