In Reconciling a Bank Statement,the Bank Balance Is $1,800 and the Checkbook

question 154

Multiple Choice

In reconciling a bank statement,the bank balance is $1,800 and the checkbook balance is $1,205.Which of the following is the MOST probable reason why the bank balance is larger than the book balance?

• A) There are outstanding checks.
• B) The bank has deducted certain amounts for bank service charges.
• C) A deposit in transit was made at the end of the month.
• D) The company erroneously recorded a check for an amount less than actual.

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Definitions:

Constructive Trust

A legal remedy imposed to address unjust enrichment, where property is held by someone who should not profit from it.

Incorporated by Reference

A method in legal documents where the contents of an external document are made a part of the main document by mentioning it explicitly.

Testator

An individual who has made a will or testament to dictate the distribution of their assets after their death.

Testamentary Capacity

The legal and mental ability of an individual to make or alter a valid will, including understanding the nature of the document and the assets.