The Following Information Was Available to the Accountant of Horton

question 12

Multiple Choice

The following information was available to the accountant of Horton Company when preparing the monthly bank reconciliation: $\begin{array}{c}\begin{array}{|l|} \hline \text { Outstardirg cheques: } &\\ \hline \text { } &\\ \hline \text { Bark service charges } &\\ \hline \text { Deposits in trarsit } &\\ \hline \text { Interest received from bark} &\\\hline \text { Customer cheque returned by bark as NSF } &\\ \hline \text { Cash balance per bark statement} &\\\hline \text { Cash balarice per books (prior to reconciliation) } &\\\hline \end{array}\begin{array}{r|}\hline \# 643 \text {for} \$ 50 \\\hline \# 651 \text {for} \$ 43 \\\hline \$25\\\hline \$190\\\hline \$5\\\hline \$20\\\hline \$975\\\hline \$660\\\hline \end{array}\end{array}$ The amount of cash that should appear on the balance sheet following completion of the reconciliation and adjustment of the accounting records is:

• A)$660
• B)$640
• C)$620
• D)$305

Understand the concept of payback period and how it is calculated.

Know the differences between net present value and average rate of return methods of capital investment analysis.

Recognize the purpose and method of calculating average rate of return.

Comprehend the concept of net cash inflows and their importance in capital budgeting decisions.

---

Definitions:

Population variance

A measure of the dispersion of all data points within a population, squared from the mean of the population.

Confidence interval

A gamut of numbers, produced from sample statistics, believed to enfold the covert value of a population parameter.

Sample standard deviation

A statistic that measures the dispersion of a dataset relative to its mean and is calculated as the square root of the variance.

True average age

The actual mean age of all individuals in a specified group or population.