Which of the Following Items Found on a Bank Reconciliation

question 1

Multiple Choice

Which of the following items found on a bank reconciliation does NOT require an adjusting entry?

• A) Interest earned
• B) A bank service charge
• C) A note collected by the bank
• D) Deposits in transit

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Definitions:

Indirect Cost

Expenses not directly tied to the production of goods or services, such as administration, rent, and utilities.

Manufacturing Overhead

This encompasses all the indirect costs associated with the manufacturing process, including utilities, depreciation, and salaries for non-direct labor.

Variable Cost

Costs that vary directly with the level of production or output, such as raw materials and direct labor expenses.

Fixed Cost Elements

Components of a business's fixed expenses, which can include lease payments, insurance premiums, and salaries, and do not change with production levels.