Loretta's Bank Statement Shows a Balance of $2,381

question 9

Multiple Choice

Loretta's bank statement shows a balance of $2,381.10. There are two outstanding deposits of $550 and $280. The statement showed a charge for $22 for new checks and an interest payment of $6.45. The outstanding checks were: Check 672 for $25.00, Check 675 for $45.76, Check 677 for $23.94, and Check 678 for $145.90. If Loretta's checkbook balance shows $2,929.95, what correction should she make?

• A) Adjust down $15.55
• B) Adjust down $40.55
• C) Adjust up $15.55
• D) Adjust up $40.55

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Definitions:

Novation

The process of substituting a new contract or obligation for an old one, requiring the agreement of all parties involved.

Three-Part Test

A methodological framework consisting of three criteria used to evaluate the validity, legality, or effectiveness of something.

Tendered Performance

The act of offering or presenting for acceptance a performance of obligations under a contract.

Minor Contractual Term

A less important condition or provision of a contract that does not go to the heart of the agreement.