Linville Company Gathered the Following Reconciling Information in Preparing Its

question 114

Multiple Choice

Linville Company gathered the following reconciling information in preparing its April bank reconciliation: $\begin{array}{lr}\text { Cash balance per books, } 4 / 30 & \$ 17,600 \\\text { Deposits in transit } & 2,400 \\\text { Notes receivable (face, } \$ 5,000 \text { ) and interest collected by bank } & 5,920 \\\text { Bank charge for check printing } & 30 \\\text { Outstanding checks } & 12,000 \\\text { NSF check } & 1,120\end{array}$ Use the following tabular analysis to determine the required adjustment for the notes receivable to Linville's accounts assuming that no interest has been accrued:

• A)Increase Cash $5920 decrease Notes Receivable $5920.
• B)Decrease Cash $5920 increase Interest Expense $920 decrease Notes Payable $5000.
• C)Increase Cash $5920 increase Interest Revenue $920 decrease Notes Receivable $5000.
• D)No adjustment is needed because the bank collected the note.

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Definitions:

Tarasoff

Refers to a legal case and resulting rule that mental health professionals have a duty to warn identifiable individuals if their client poses a serious risk of harm to them.

Patient's Confidentiality

The ethical and legal duty of healthcare providers to protect personal health information of patients from unauthorized disclosure.

Absolute Duty

An unconditional obligation that must be performed regardless of the circumstances.

California Supreme Court

The highest state court in California, responsible for overseeing and ruling on legal and constitutional issues.