X Company Used the Following Items to Complete Its Bank

question 117

Multiple Choice

X Company used the following items to complete its bank reconciliation for the month of October: ∙ Deposits in transit were $2,500.
∙ Outstanding checks totaled $1,100.
∙ Bank service charges were $10.
∙ The company correctly wrote a check for $192,but mistakenly recorded the check as $129 on its books.The bank cashed the check correctly for $192.
∙ A customer's check for $50 was returned by the bank,NSF.
The $1,100 of outstanding checks should be ________.

• A)added to the balance per bank statement
• B)deducted from the balance per bank statement
• C)added to the balance per books
• D)deducted from the balance per books

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Definitions:

Profit Maximization

The process by which a firm adjusts its production and sales strategies to achieve the highest possible profit under given conditions.

Purely Competitive

A market scenario where identical products are sold by many sellers, making it impossible for individual firms to influence market prices or conditions.

MRP

Stands for Marginal Revenue Product, which is the additional revenue generated by employing one more unit of a factor, such as labor or capital.

Marginal Resource Cost

It refers to the additional cost incurred by a firm when it uses one more unit of input.