A Firm's Bank Reconciliation Statement Shows a Book Balance of $21,640

question 76

Multiple Choice

A firm's bank reconciliation statement shows a book balance of $21,640, an NSF check of $800, and a service charge of $50. Its adjusted book balance is:

• A)$20,890.
• B)$22,390.
• C)$20,790.
• D)$22,490.

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Definitions:

Manufacturing Defects

Flaws in a product resulting from the manufacturing process that make it dangerous or unfit for its intended use.

Arbitration

A process for the settlement of disputes whereby an impartial third party or board hears the dispute, then makes a decision that is binding on the parties. Most commonly used to determine grievances arising out of a collective agreement, or in contract disputes.

Automobiles

Motor vehicles with four wheels designed primarily for passenger transportation on public roads.

Caveat Emptor

Latin: “Let the buyer beware.”