Tavarez Company Assembled the Following Information in Completing Its July

question 148

Multiple Choice

Tavarez Company assembled the following information in completing its July bank reconciliation: balance per bank $15,280; outstanding checks $3,100; deposits in transit $5,000; NSF check $320; bank service charge $100; cash balance per books $17,600.As a result of this reconciliation, Tavarez will

• A)reduce its cash account by $1,900.
• B)reduce its cash account by $100.
• C)increase its cash account by $220.
• D)reduce its cash account by $420.

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Definitions:

Retired Couple

Two individuals in a partnership who have stopped working permanently, often relying on savings, pension, or government benefits for income.

Fixed-Wage Contract

An employment agreement where the salary does not change regardless of economic conditions or performance levels.

Inflation

The quickness at which the comprehensive level of goods and services' prices rises, corroding purchasing ability.

Real Income

The earning power of a person's money, considering the effects of inflation on purchasing power.