When Preparing a Bank Reconciliation, Which of the Following Items

question 78

Multiple Choice

When preparing a bank reconciliation, which of the following items should be added to the book balance?

• A) EFT receipts
• B) Deposits in transit
• C) Collection items
• D) Both EFT receipts and collection items

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Definitions:

COLA

Cost-of-Living Adjustment; an increase in income or benefits designed to offset inflation and maintain purchasing power.

Consumer Price Index

A measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care, used to estimate inflation.

APR

Annual Percentage Rate, a measure that reflects the cost of borrowing on loans or credit cards or the yield from an investment, including interest and other fees.

Compounded Monthly

The process of adding interest to the principal sum of a loan or deposit, or in other words, interest on interest, calculated on a monthly basis.