Reconciliation and Control Reports Can Help Detect Whether Any Errors

question 15

Multiple Choice

Reconciliation and control reports can help detect whether any errors have been made during the process of updating the general ledger.One reconciliation that indicates whether the sum of debit balances is equal to the sum of credit balances in the general ledger is commonly known as

• A)a trial balance.
• B)a completeness test.
• C)a closed-loop verification.
• D)a general journal listing.

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Definitions:

Nominal Box Office Receipts

The total amount of money earned from ticket sales for movies at theaters, not adjusted for inflation.

Prices

The cash amount predicted, necessary, or offered as compensation for something.

Real Interest Rate

The interest rate that has been adjusted to remove the effects of inflation, representing the true cost of borrowing and the true yield on investing.

Nominal Interest Rate

The interest rate before adjustment for inflation; the stated rate on a loan or investment.