When Doing an Account Reconciliation, Interest Earned on Your Account

question 65

Multiple Choice

When doing an account reconciliation, interest earned on your account should be:

• A) deducted from your checkbook ledger balance.
• B) added to your checkbook ledger balance.
• C) ignored because the bank has already recorded it.
• D) listed as outstanding.
• E) treated like a loan.

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Definitions:

Advertising Fee

A charge incurred for the promotion of products or services through various media channels to target potential customers.

Franchisor

The party in franchising that owns the overarching company, trademarks, and products or services being offered, which grants the right for a franchisee to operate under the business's name.

Franchisee

A party that acquires the rights to use a company's trademark and business model to conduct business under that name.

Royalty Fees

Periodic payments made by a franchisee to the franchisor, typically based on a percentage of the franchisee's sales revenue.