This Month's Bank Statement Includes a Check from a Customer

question 144

Multiple Choice

This month's bank statement includes a check from a customer that was marked NSF.How would this item be treated on the bank reconciliation?

• A)It would be deducted from the book balance.
• B)It would be added to the bank balance.
• C)It would be deducted from the bank balance.
• D)It would be added to the book balance.

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Definitions:

Prevention Costs

The costs incurred to prevent defects in products or services, including quality planning and training.

Appraisal Costs

The expenses related to ensuring that a product or service meets quality standards, including the costs of inspections, testing, and quality audits.

Quality Cost Report

A financial report that outlines the costs associated with ensuring and maintaining the quality of products or services.

Appraisal Cost

Expenses related to the evaluation and inspection of products and services to ensure they meet quality standards and are defect-free.