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:

Compounded Monthly

A financial calculation method where the interest earned on an investment is added to the principal each month, leading to increasing amounts of interest accrued over time.

Periodic Interest Rate

The interest rate applied to a financial product or loan over a specific period, less than a year, reflecting the frequency of compounding.

Missing Value

Refers to the absence of data in a dataset or a variable in an equation or formula.

Missing Value

A data point that is lost or not recorded in a dataset or experiment.