The Bank Recorded a $2,000 Deposit as $200

question 54

Multiple Choice

The bank recorded a $2,000 deposit as $200.How would this information be included on the bank reconciliation?

• A) A deduction on the bank side
• B) A deduction on the book side
• C) An addition on the book side
• D) An addition on the bank side

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Definitions:

Net Working Capital

The difference between a company's current assets and current liabilities, indicating the short-term liquidity and operational efficiency.

Capacity Utilization

The percentage of a firm or country's productive capacity that is being used at a given time.

Fixed Assets

Long-term tangible assets that are used in the operations of a business and are not expected to be consumed or converted into cash within a year.

Percentage of Sales Approach

A forecasting method that estimates future financial outcomes based on a percentage relationship between sales growth and other financial accounts.