Delta Company Experienced an Accounting Event That Affected Its Financial

question 96

Multiple Choice

Delta Company experienced an accounting event that affected its financial statements as indicated below: Which of the following accounting events could have caused these effects on Delta's statements?

• A) Paid a cash dividend.
• B) Incurred a cash expense.
• C) Borrowed money from a bank.
• D) Earned cash revenue.

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Definitions:

Outstanding Checks

Checks that have been written and recorded in the payer's account but not yet cashed or processed by the recipient.

Adjusting Entries

Entries recorded in the journals at the close of an accounting period to distribute income and expenditures to the period they actually took place.

Bank Reconciliation

Bank reconciliation is the process of matching the balances in an entity's accounting records for a cash account to the corresponding information on a bank statement.

NSF Check

A check that is not honored by a bank due to insufficient funds in the account of the person who wrote it; also known as a bounced check.