In the Process of Reconciling Its Bank Statement for April,Donahue

question 206

Multiple Choice

In the process of reconciling its bank statement for April,Donahue Enterprises' accountant compiles the following information:
$$\begin{array} { | l | r | } \hline \text { Cash balance per company books on April 30 } & \$ 6,275 \\\hline \text { Deposits in transit at month-end } & \$ 1,300 \\\hline \text { Outstanding checks at month-end } & \$ 620 \\\hline \text { Bank charge for printing new checks } & \$ 45 \\\hline \text { Note receivable and interest collected by bank on Donahue's behalf } & \$ 770 \\\hline \begin{array} { l } \text { A check paid to Donahue during the month by a customer is returned by } \\\text { the bank as NSF }\end{array} & \$ 480 \\\hline\end{array}$$
The adjusted cash balance per the books on April 30 is:

• A) $6,900
• B) $8,160
• C) $4,600
• D) $6,520
• E) $5,840

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Definitions:

Directing

The process in management that involves guiding, leading, and overseeing the performance of employees to achieve organizational goals.

Direct Materials

Raw materials that are directly traceable to the production of goods.

Indirect Materials

Materials used in the production process, but not directly traceable to a finished product, like lubricants and cleaning supplies for machine maintenance.

Manufacturing Overhead

All manufacturing costs that are not directly related to the production of a product, such as factory rent, utilities, and maintenance.