Disbursements on the Bank Transfer Schedule Should Be Correctly Included

question 36

Multiple Choice

Disbursements on the bank transfer schedule should be correctly included in or excluded from year-end bank reconciliations as outstanding cheques.Understating outstanding cheques on the bank reconciliation indicates

• A)the possibility of kiting.
• B)a cutoff error in the bank account.
• C)an understatement of the bank balance.
• D)an increase in inherent risks associated with cash.

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Definitions:

Normal Curve

A bell-shaped curve that represents the distribution of a set of data where most occurrences take place in the middle of the range.

Standard Deviation

A statistical measurement that quantifies the dispersion or spread of a set of data points around the mean.

Raw Scores

A raw score is the initial, unadjusted score obtained directly from the number of questions answered correctly on a test or assessment.

Test-retest Reliability

The consistency of test scores obtained by the same individuals over successive administrations of the same test.