Which of the Following Items Does NOT Cause a Difference

question 57

Multiple Choice

Which of the following items does NOT cause a difference in the bank balance and the book balance on a bank reconciliation?

• A)Cancelled cheques
• B)Deposits in transit
• C)Dishonoured cheques
• D)Outstanding cheques

Recognize logical fallacies in arguments and reasoning.

Develop and enhance critical thinking and problem-solving skills.

Understand the concept of compound interest and its calculations.

Apply mathematical formulas for calculating future value of investments.

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Definitions:

Debt

An amount of money borrowed by one party from another, typically used by companies and governments to finance their operations.

Acquiring Company

A company that purchases or acquires another company, typically to expand its operations or enter new markets.

Insolvent

A firm is technically insolvent when it can’t pay its short-term debts. Legal insolvency implies the firm’s liabilities exceed its assets.

Liabilities

Financial obligations or debts that a company owes to others, such as loans, accounts payable, and mortgages.