During the Month,a Company Learns That a Check It Issued

question 76

Multiple Choice

During the month,a company learns that a check it issued has been accidentally destroyed.On the bank reconciliation,the company would

• A) deduct the amount from the balance per bank.
• B) deduct the amount from the balance per books.
• C) add the amount to the balance per bank.
• D) add the amount back to the balance per books.

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Definitions:

Adjusting Journal Entries

Entries made in account books at the end of an accounting period to allocate revenues and expenses to the period in which they actually occurred.

Ledger Accounts

Register that contains a record of all financial transactions categorized by account types within an organization's financial statements.

AASB 12/IFRS 12

An accounting standard that requires disclosures of interests in other entities, including subsidiaries, joint arrangements, associates, and unconsolidated structured entities.

Disclosure Requirements

Specific information that must be provided in financial statements or notes to the statements, ensuring transparency and completeness in financial reporting.