Abbott Company Wrote a Check for $660, but Recorded It

question 7

Multiple Choice

Abbott Company wrote a check for $660, but recorded it in the accounting records as $606. This error would require an adjustment on the bank reconciliation of

• A) Adding $54 to the balance per the bank statement
• B) Deducting $54 from the balance per the bank statement
• C) Adding $54 to the balance per the books
• D) Deducting $54 from the balance per the books

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Definitions:

Divisional Structure

An organizational framework where operations are grouped based on divisions, which could be organized by product lines, geographical locations, or customer segments.

Meganational Company

A large corporation operating in multiple countries around the globe.

Matrix Structure

An organizational structure that creates dual lines of authority and combines functional and product departments in a way that allows for a high level of collaboration.

Primary Boss

The main supervisor or manager directly responsible for overseeing an employee's work performance and progress.