Which of the Following Procedures Is NOT Part of the Preparation

question 55

Multiple Choice

Which of the following procedures is NOT part of the preparation of a bank reconciliation for a chequing account?

• A) comparing deposits listed on the bank statement to the cash account to identify deposits in transit
• B) comparing cancelled cheques returned with the bank statement to the cash account to identify outstanding cheques
• C) looking for bank services charges and other items on the bank statement that have not yet been included in the cash account
• D) reversing the transactions recorded on the company's records not appearing on the bank statement

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Definitions:

Absorption Costing

A costing method that includes all manufacturing costs, both direct and indirect, in the cost of a product.

Net Operating Income

The total profit of a company after operating expenses are subtracted from operating revenues, but before taxes and interest are deducted.

Single Product

A business model or accounting scenario where a company produces or sells only one type of product, simplifying inventory, production, and costing processes.

Segment Margin

The amount of profit or loss generated by a particular segment of a business, after deducting direct expenses attributable to that segment.