A Check That Was Outstanding on Last Period's Bank Reconciliation

question 72

Multiple Choice

A check that was outstanding on last period's bank reconciliation was not among the cancelled checks returned by the bank this period.In preparing the bank reconciliation for this period,the amount of this check should be:

• A)added to the bank balance of cash.
• B)ignored in preparing this period's bank reconciliation.
• C)deducted from the bank balance of cash.
• D)deducted from the company's balance of cash.

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Definitions:

Comparative Advantage

The expertise of an individual, a corporation, or a sovereign state to create a commodity or a service that bears a lower opportunity cost than that of competing entities.

Relative Costs

The cost of one good or service compared to another, often considered in terms of the opportunity cost of choosing one option over another.

Labor-Productivity

The measure of the amount of goods and services produced by one hour of labor.

Comparative Advantage

The ability of an entity to produce a good or service at a lower opportunity cost than others, leading to more efficient international trade.