A Company's Cash Ledger Shows an Ending Balance of $5,000

question 52

Multiple Choice

A company's cash ledger shows an ending balance of $5,000.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 book balance?

• A) $5,194
• B) $4,486
• C) $5,206
• D) $4,806

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Definitions:

Accounts Payable

Accounts Payable are obligations a company has to pay off to its creditors or suppliers within a short period, typically one year or less.

Accounts Receivable

Debt owed by customers to an enterprise for goods or services supplied but not yet settled.

Interim Statements

Financial reports covering a period of less than a full fiscal year, often quarterly, to provide timely insights into a company’s performance.

Accounting Period

A specific period of time used for financial reporting and analysis, typically a year or quarter.