A Check Was Written by a Business for $549, but Was

question 126

Multiple Choice

A check was written by a business for $549, but was recorded erroneously in the cash ledger as $459. How would this error be included on the bank reconciliation?

• A)an addition on the book side
• B)a deduction on the bank side
• C)a deduction on the book side
• D)an addition on the bank side

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Definitions:

Security Agreement

A contract that grants a lender a security interest in specified assets of the borrower, serving as collateral for a loan.

Vicariously Liable

A legal principle where one party is held responsible for the actions or omissions of another party, typically in employment relationships.

Secured Creditor

A lender or creditor that has the right to claim specific assets of the borrower if the debtor fails to pay back the owed money.

Debt Commitment

An obligation by an entity to repay borrowed money, typically documented in a formal agreement.