A Check Was Written by a Business for $205,but Was

question 68

Multiple Choice

A check was written by a business for $205,but was recorded in the cash payments journal as $502.How would this error be included on the bank reconciliation?

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

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Definitions:

Feasible Allocation

is a concept in economics that refers to the division of resources or goods among various uses or people in a way that is possible given the resources available.

Utility Function

A mathematical representation in economics that captures the level of satisfaction or utility that consumers derive from consuming goods and services.

Desert Island

A secluded and uninhabited island, often used in scenarios and thought experiments in economics and ethics to explore human behavior in isolation.

Competitive Equilibrium

A market situation where supply equates demand, leaving no incentive for price changes, assuming all agents are price-takers.