If a Check Correctly Written and Paid by the Bank

question 15

Multiple Choice

If a check correctly written and paid by the bank for ¥4,910 is incorrectly recorded on the company's books for ¥4,190, the appropriate treatment on the bank reconciliation would be to

• A)add ¥720 to the book's balance.
• B)subtract ¥720 from the book's balance.
• C)deduct ¥720 from the bank's balance.
• D)deduct ¥4,910 from the book's balance.

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Definitions:

Property Tax

Taxes levied by local governments based on the assessed value of real estate property owned.

Accounts Receivable

An asset, which is a claim against the customer created by selling merchandise or services on credit.

Credit Sales

Sales made on credit, where the payment from the customer is received at a later date.

Accounts Receivable

Money owed to a business by its clients for goods or services delivered but not yet paid for.