When Bank Errors Are Detected by a Company on the Bank

question 11

Multiple Choice

When Bank Errors are detected by a company on the bank statement and a bank reconciliation is prepared,what action does the company need to take to adjust its Cash account?

• A)Increase the Cash account.
• B)Decrease the Cash account.
• C)Increase or decrease the Cash account depending on the error.
• D)Take no action.

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Definitions:

Tax Cut

A reduction in the rate of taxes imposed by the government.

Government Contract

A legal agreement between a government entity and a private company for goods or services, often involving specific regulatory requirements.

Company Fraud

Illegal activities conducted by a company or its representatives, intended to deceive investors, authorities, or the public for financial gain.

CAPM

The Capital Asset Pricing Model, a theoretical framework used to determine the expected return on an investment based on its risk in comparison to the market.