At April 30 Mendoza Company Has the Following Bank Information

question 131

Multiple Choice

At April 30 Mendoza Company has the following bank information: $$\begin{array} { l r } \text { Cash balance per bank } & \$ 3,600 \\\text { Outstanding checks } & \$ 280 \\\text { Deposits in transit } & \$ 550 \\\text { Credit memo for interest } & \$ 10 \\\text { Bank service charge } & \$ 20\end{array}$$ What is Mendoza's adjusted cash balance on April 30?

• A)$3860.
• B)$3880.
• C)$3330.
• D)$3870.

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Definitions:

Payback Period

The length of time it takes for an investment to recover its initial cost, used in capital budgeting to assess investment viability.

After-Tax Net Income

The amount of profit a company has left after paying all its taxes.

Straight-Line Depreciation

A method of allocating the cost of a tangible asset over its useful life in equal annual amounts, simplifying financial calculations.

Salvage Value

The envisaged monetary value of an asset when sold after its lifespan of utility.