If a Check Correctly Written and Paid by the Bank

question 70

Multiple Choice

If a check correctly written and paid by the bank for $724 is incorrectly recorded on the company's books for $742 the appropriate treatment on the bank reconciliation would be to

• A) add $18 to the bank's balance.
• B) add $18 to the book's balance.
• C) deduct $724 from the bank's balance.
• D) deduct $724 from the book's balance.

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Definitions:

Price Discrimination

A practice of charging different prices to different customers for the same product or service, where such differences are not justified by differences in cost.

Discounted Price

A reduced price offered on goods or services, typically to stimulate sales or clear out inventory.

Antitrust Law

Legal regulations designed to promote competition and prevent monopolistic practices by prohibiting unfair business practices and mergers that significantly reduce competition.

Exempt

Status or conditions that provide immunity or exception from a general rule, such as certain incomes being exempt from tax.