Russel Company Assembled the Following Information in Completing Its March

question 61

Multiple Choice

Russel Company assembled the following information in completing its March bank reconciliation: $$\begin{array} { l r } \text { Balance per bank } & \$ 19,100 \\\text { Outstanding checks } & \$ 3,875 \\\text { Deposits in transit } & \$ 6,250 \\\text { NSF check } & \$ 400 \\\text { Bank service charges } & \$ 125 \\\text { Cash balance per books } & \$ 22,000\end{array}$$ As a result of this reconciliation Russel will

• A)reduce its cash account by $2375.
• B)reduce its cash account by $125.
• C)increase its cash account by $275.
• D)reduce its cash account by $525.

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Definitions:

Owner-Manager-Operated Business

A business enterprise directly managed by its owner or owners, typically involving hands-on operations.

Profit Centers

Profit centers are divisions or branches of a company that are responsible for generating their own revenue and profits, contributing to the overall success of the business.

Centralization

The organizational structure where decision-making authority is concentrated at the top levels of management.

Investment Centers

Parts of an organization with control over their own revenues, expenses, and investments, whose performance is measured by return on investment (ROI).