Check Payment for $658 Was Incorrectly Entered in the Cash

question 59

Multiple Choice

Check payment for $658 was incorrectly entered in the cash account as $856. Which adjustment needs to be made?

• A)decrease the book balance
• B)decrease the bank statement balance
• C)increase the book balance
• D)increase the bank statement balance

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Definitions:

Cost Of Goods Sold

The expenses directly associated with the manufacturing of products sold by a business, which include the costs of both materials and labor.

Percentage Increase

A measure of how much a quantity has grown, expressed as a percentage of its previous value.

Financial Statement Analysis

The process of examining and interpreting a company’s financial statements to gauge its performance, strength, and profitability.

Circular Analysis

A method of analysis in which variables are interconnected through a series of equations, allowing for multiple variables to be solved simultaneously.