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

question 126

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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?


Definitions:

Journalize

The act of recording transactions in an accounting journal, noting the debit and credit aspects of each transaction.

Straight-Line Method

A depreciation method that allocates an asset's cost evenly across its useful life.

Annual Depreciation

Definition: The portion of the cost of a fixed asset that is expensed on an annual basis through the process of depreciation.

Book Value

The net value of a company's assets minus its liabilities, often used to assess the financial health of a business.

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