A Check Drawn by a Depositor for $810 in Payment

question 93

Multiple Choice

A check drawn by a depositor for $810 in payment of a liability was recorded by the depositor as $180.The $630 difference would be included on the bank reconciliation as a(n) :

• A) addition to the cash balance per books.
• B) addition to the cash balance per bank.
• C) deduction from the cash balance per bank.
• D) deduction from the cash balance per books.

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Definitions:

Annuity

A financial product that pays out a fixed stream of payments to an individual, often used as part of retirement strategies.

Times Interest Earned

A metric assessing a firm's capability to fulfill its debt requirements using its earnings prior to interest and taxes.

Market Rate

Market rate is the common or prevailing price level for goods, services, or financial instruments in a specific marketplace.

Contract Rate

The agreed-upon price or interest rate specified within a contract.