The Following Information Is Needed to Reconcile the Cash Balance

question 119

Multiple Choice

The following information is needed to reconcile the cash balance for Woods Paper Products.
• A deposit of $5,794.62 is in transit.
• Outstanding checks total $1,533.25.
• The book balance is $5,695.62.
• The bookkeeper recorded a $1,524.00 check as $15,240 in payment of the current month's rent.
• The bank balance at February 28,2008 was $16,500.25.
• A deposit of $300 was credited by the bank for $3,000.
• A customer's check for $1,280 was returned for nonsufficient funds.
• The bank service charge is $70.
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What was the adjusted book balance?

• A) $6,670.38
• B) $18,061.62
• C) $20,761.62
• D) $10,140.24

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Definitions:

Revenue

The total income generated by a company from its business activities, typically from the sales of goods or services before any expenses are deducted.

Break-even

The point at which total costs and total revenue are equal, meaning that a business neither makes a profit nor suffers a loss.

Dumping

The practice of a country or company exporting products at a price lower than the domestic market price, often considered unfair competition.

Unreasonably Low Prices

Pricing strategies that are significantly below the market average or cost of production, often used to eliminate competition or enter new markets.