Dobler Company Gathered the Following Reconciling Information in Preparing Its

question 136

Multiple Choice

Dobler Company gathered the following reconciling information in preparing its June bank reconciliation: $\begin{array}{lr}\text { Cash balance per books, 6/30 } & \$ 12,600 \\\text { Deposits in transit } & 900 \\\text { Notes receivable and interest collected by bank } & 2,220 \\\text { Bank charge for check printing } & 75 \\\text { Outstanding checks } & 4,500 \\\text { NSF check } & 420\end{array}$ The adjusted cash balance per books on June 30 is

• A)$15225.
• B)$14820.
• C)$14325.
• D)$15165.

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Definitions:

GAAP

Generally Accepted Accounting Principles - a collection of commonly-followed accounting rules and standards for financial reporting.

Deferred Income Taxes

Taxes that are accrued but not yet paid or collected, often due to differences in accounting methods between tax regulations and accounting principles.

Valuation Allowance

A reserve established against deferred tax assets to reduce their value to an amount that's more likely than not to be realized.

Income Tax Obligation

The amount of money a person or entity is legally required to pay to the government based on their taxable income.