If the Balance Shown on a Company's Bank Statement Is

question 59

Multiple Choice

If the balance shown on a company's bank statement is less than the correct cash balance,and neither the company nor the bank has made any errors,there must be

• A) deposits credited by the bank but not yet recorded by the company.
• B) outstanding checks.
• C) bank charges not yet recorded by the company.
• D) deposits in transit.

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Definitions:

Present Value

The current assessment of a future sum of money or cash flows, given a designated return rate.

Compounded Quarterly

The calculation of interest on the principal amount and previously earned interest on a quarterly basis.

Annuities

Financial products that provide a stream of payments over time in exchange for an initial lump sum investment.

Periodic Interest Rate

The interest rate charged or paid over a specific period of time, often less than one year, such as a month or quarter.