Flemco Has Made a Series of Transfers Between Bank Accounts

question 53

Essay

Flemco has made a series of transfers between bank accounts near year-end,some through inter-bank wired transfers and some through checks.You have audited the wired transfers and agree that they have been properly stated and now have the following schedule of transfers between cash accounts made using checks.You may assume that dates per bank are correct,and that dates per books are the dates the transactions were recorded in the books.

 
Analyze each of the above transfers and determine whether you believe each causes total cash to most likely be correct,overstated,or understated as of year-end.
$$\begin{array} { | c | c | l | } \hline \text { Question \# } & \begin{array} { c } \text { Check } \\\text { number }\end{array} & \begin{array} { l } \text { As a result of the transfer, } \\\text { total cash at December } 31 \\\text { appears to be }\end{array} \\\hline 1 & 4040 & \\\hline 2 & 3270 & \\\hline 3 & 4041 & \\\hline 4 & 3271 & \\\hline 5 & 700 & \\\hline\end{array}$$

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Definitions:

Short-Run Aggregate Supply Curve

A curve showing the relationship between the total supply of goods and services and the price level for output in the short run.

Energy Prices

The cost of consumable energy sources, such as oil, natural gas, coal, and electricity, which can fluctuate based on market demand, supply conditions, geopolitical events, and other factors.

Productive Resource

A Productive Resource is any input used in the production of goods or services, including labor, capital, and natural resources.

Aggregate Demand Curve

A visual depiction that illustrates the connection between the general level of prices and the aggregate demand for goods and services within an economy.