If a Company Erroneously Records a $50 Check Received from a Customer

question 57

Multiple Choice

If a company erroneously records a $50 check received from a customer as $500 in its records, which of the following must occur when reconciling its bank statement?

• A)The company must increase the balance per its records by $500.
• B)The company must increase the balance per its records by $450.
• C)The company must decrease the balance per its records by $500.
• D)The company must decrease the balance per its records by $450.

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Definitions:

Embolus

A portion of a thrombus that breaks off and moves through the bloodstream.

Small Artery

A blood vessel with a smaller diameter that branches off from an artery and leads to capillaries, transporting blood to various parts of the body.

Artery

A blood vessel that carries oxygenated blood away from the heart to the body's tissues.

Blood Type

A classification of blood based on the presence or absence of inherited antigenic substances on the surface of red blood cells.