A Company Received a Bank Statement with a Balance of $5,350.Reconciling

question 38

Multiple Choice

A company received a bank statement with a balance of $5,350.Reconciling items included a bookkeeper error of $200 (a $300 check recorded as $500) ,two outstanding checks totaling $720,a service charge of $15,a deposit in transit of $180,and interest revenue of $21.What is the adjusted bank balance?

• A) $4,636
• B) $4,610
• C) $5,016
• D) $4,810

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Definitions:

Acquisition Differential

The gap between what a company is bought for and the net market value of its recognizable assets and liabilities.

Joint Venture

A business entity created by two or more parties, generally characterized by shared ownership, shared returns and risks, and shared governance.

Retained Earnings

Accumulated net profits of a company not distributed as dividends but reinvested in the business or kept as a reserve.

Non-Controlling Interest

A ownership in a corporation where the stake is less than a majority of the voting shares, often referring to minority interests in subsidiary companies.