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

question 13

Multiple Choice

In preparing a bank reconciliation statement for a business with a substantial bank balance, the appropriate treatment for a $8 100 dividend on shares, deposited directly into the bank account, appearing on the bank statement 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:

Dynamic Equilibrium

A state of balance between continuing processes, especially in physical and chemical reactions, where forward and reverse processes occur at equal rates.

Cristae

The internal folds of the mitochondrion's inner membrane, where aerobic respiration processes occur, enabling energy production.

Ampulla

A dilation or expansion in a duct or tube, notably the ampulla of Vater in the digestive system, where the bile and pancreatic ducts enter the small intestine.

Maculae

Small, specialized areas in the center of the retina that provide detailed central vision and are critical for tasks requiring focus, such as reading or driving.