Journal Entries Are Required for the Reconciling Items on the Book

question 14

Multiple Choice

Journal entries are required for the reconciling items on the book side because:

• A)those transactions have not yet been recorded by the bank.
• B)the adjusted balances on both sides are the same amounts.
• C)the amounts are immaterial.
• D)those transactions have not yet been recorded on the company books.

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Definitions:

Interest Rate

The fraction of a loan incurred as interest by the borrower, commonly indicated as a yearly percentage.

Grandchildren

The children of one's children, forming the third generation in a family lineage.

Future Value Factor

A factor used to calculate the future value of a cash flow at a certain rate of interest over a specific number of periods.

Interest Rate

is the percentage of principal charged by the lender for the use of its money or the return earned on deposit accounts.