Suppose Sharwin Purchased $25 000 in Candles from Maggie,but Expressed

question 42

Multiple Choice

Suppose Sharwin purchased $25 000 in candles from Maggie,but expressed to Maggie that he did not have enough cash at the time to pay it all up front.Maggie decides to accept instalment payments from Sharwin at $5 000 each,with a clause stating that defaulted payments give Maggie the immediate right to claim her $25 000 owing plus interest.The negotiable instrument and its respective clause in this situation are

• A)a bill of exchange with a lump sum clause.
• B)a certified cheque with an acceleration clause.
• C)a bill of exchange with a notice of dishonor.
• D)a promissory note with a notice of dishonor.
• E)a promissory note with an acceleration clause.

Know the appropriate actions for adjusting the Cash account when bank errors are identified.

Distinguish between recorded and unrecorded charges in bank reconciliations.

Grasp the correct procedures for recording various transactions in QBO, including bank deposits and expenses.

Recognize bank reconciliations as an effective internal control mechanism.

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