If the Balance on the Bank Statement Does Not Equal

question 110

Multiple Choice

If the balance on the bank statement does not equal the balance in the company's Cash account,then you can conclude that:

• A) the company accountant made an error in the accounting process
• B) the bank made an error
• C) both the company accountant and the bank made errors
• D) there are some reconciling items that, when identified, will explain the differences between the balances

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Definitions:

Gross Pay

The total amount of salary or wages earned by an employee before any deductions are taken for taxes, social security, etc.

Calendar Year

The one-year period that begins on January 1 and ends on December 31, used for most civil purposes and by many businesses as a fiscal year.

Work Week

A work week refers to the standard period of time during which an employee is expected to work, usually defined by the employer, and often consisting of 40 hours.

FICA-OASDI

Taxes collected under the Federal Insurance Contributions Act for Old Age, Survivors, and Disability Insurance, commonly known as Social Security.