Which of the Following Misstatements Could Be Detected as Part

question 13

Multiple Choice

Which of the following misstatements could be detected as part of the tests of a bank reconciliation?

• A)payment of interest to a related party at an incorrect rate
• B)exclusion of mortgage interest receivable from the balance sheet
• C)deposits recorded as cash receipts at the end of year,but included as outstanding deposits (deposits in transit)
• D)a defalcation of cash by interception of collections before they are recorded

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Definitions:

Conglomerate Merger

A type of merger where two companies that operate in entirely different industries combine resources or operations.

Not-for-profit Organizations

entities that operate for purposes other than making a profit, often focusing on social, educational, humanitarian, or cultural objectives.

For-profit Companies

For-profit companies are businesses that operate with the primary goal of earning financial profit for their owners or shareholders.

Conglomerate Merger

A type of merger where two or more companies in unrelated business activities or industries combine their operations.