A Check of $75 Deposited by a Company Was Returned

question 70

Multiple Choice

A check of $75 deposited by a company was returned to the bank for nonsufficient funds.How would this information be included on the bank reconciliation?

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

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Definitions:

Beginning Cash Balance

The amount of cash available at the start of a financial period.

Cash Budget

A financial plan that estimates cash inflows and outflows over a specific period to manage liquidity and ensure cash availability.

Incremental Approach

A decision-making process that focuses on analyzing the financial impact of small or incremental changes in operations or business activities.

Budgeting

The process of creating a plan to spend your money, outlining projected income and expenses.