Nilson Company Gathered the Following Reconciling Information in Preparing Its

question 89

Multiple Choice

Nilson Company gathered the following reconciling information in preparing its August bank reconciliation: $$\begin{array} { l r } \text { Cash balance per books, } 8 / 31 & \$ 28,000 \\\text { Deposits in transit } & 1,200 \\\text { Notes receivable and interest collected by bank } & 6,800 \\\text { Bank charge for check printing } & 160 \\\text { Outstanding checks } & 16,000 \\\text { NSF check } & 1,360\end{array}$$ The adjusted cash balance per books on August 31 is

• A)$33280.
• B)$32080.
• C)$18400.
• D)$19680.

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Definitions:

Inventory Turnover

A measure indicating the frequency at which a company's inventory is sold and replenished within a certain timeframe, reflecting the effectiveness of its inventory control.

Gross Profit

The difference between revenue and the cost of goods sold before deduction of overheads, payroll, taxation, and interest payments.

Price-Earnings Ratio

The price-earnings ratio (P/E ratio) is a valuation ratio of a company's current share price compared to its per-share earnings.

Market Price

The present trading value for assets or services within the scope of a commercial market.