The Accountant for Lola Corp There Was an Error in Recording a Customer's Check as of February

question 75

Multiple Choice

The accountant for Lola Corp.was preparing a bank reconciliation as of February 28, 2016.The following items were identified: $\begin{array}{lr}\text { Lola's book balance } & \$ 35,900 \\\text { Outstanding checks } & 12,050 \\\text { Interest earned on checking accounts } & 75 \\\text { Customer's NSF check returned by the bank } & 325\\\end{array}$ There was an error in recording a customer's check as the check was recorded by Lola as $110, but the correct amount of $101 was recorded by the bank. Lola's adjusted cash balance at February 28, 2016 is

• A) $23,591
• B) $35,641
• C) $35,659
• D) $47,691

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Definitions:

Cycle Time

The total time from the beginning to the end of a process, which includes both processing and waiting times.

Maximum Cycle Time

The longest duration permitted for completing one cycle of a production process, defining the upper limit of process efficiency.

Efficiency

The ratio of output generated to the input used, illustrating how well resources are being utilized to produce desired results.

Flow Shop

A production system where operations are arranged in a sequence, and products flow from one operation to the next with little to no variation in the process paths.