Cheque Number 6135 for $576 Was Incorrectly Entered as $657

question 125

Multiple Choice

Cheque number 6135 for $576 was incorrectly entered as $657.Which adjustment needs to be made?

• A)Decrease the book balance.
• B)Increase the bank statement balance.
• C)Decrease the bank statement balance.
• D)Increase the book balance.

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Definitions:

Nominal Rate

The nominal rate is the interest rate stated on a loan or financial product, not accounting for inflation or other factors that affect purchasing power.

Repayment Of Principal

The process of paying back the original amount borrowed in a loan, separate from interest payments.

Equal Installments

A method of loan repayment where the borrower pays the lender a constant amount of money periodically, covering both principle and interest.

Repay

The action of paying back borrowed money to the lender.