A Bank Reconciliation Item That a Company's Bank May Not

question 124

Multiple Choice

A bank reconciliation item that a company's bank may not know about would be:

• A)electronic fund transfers.
• B)deposits in transit.
• C)NSF checks.
• D)service charges.

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Definitions:

Sensitivity

The degree to which the price of a derivative, investment, or portfolio changes in response to changes in market conditions or underlying variables.

Supply Shock

An unexpected event that suddenly changes the supply of a product or commodity, resulting in a sudden change in its price.

Demand Shock

An unexpected event that causes a sudden increase or decrease in demand for goods or services in an economy.

Imported Oil

Oil that is brought into a country from foreign sources for use as a fuel or raw material.