If a Check Correctly Written and Paid by the Bank

question 157

Multiple Choice

If a check correctly written and paid by the bank for $749 is incorrectly recorded in the company's books for $794, how should this error be treated on the bank reconciliation?

• A) Add $45 to the bank's balance.
• B) Add $45 to the book balance.
• C) Subtract $45 from the bank's balance.
• D) Subtract $45 from the bank's balance and add $45 to the book's balance.
• E) Subtract $45 from the book balance.

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Definitions:

Final Clear Opportunity

A concept in tort law, particularly in negligence, which refers to the last chance a defendant might have had to avoid causing harm to the plaintiff.

Duty

A moral or legal obligation; a responsibility.

Assistance

The act of providing help or support, especially to people in need.

Dive Shop

A retail establishment that sells scuba diving and snorkeling equipment, and often offers dive training and dive trip arrangements.