If a Check Correctly Written and Paid by the Bank

question 35

Multiple Choice

If a check correctly written and paid by the bank for $272 is incorrectly recorded in the company's books for $227, how should this error be treated on the bank reconciliation?

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

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Definitions:

Lightning Protectors

Devices designed to protect electrical equipment and systems from damage caused by lightning strikes, diverting the surge to the ground.

High Resistance

An electrical characteristic where a material or device opposes the flow of electric current, resulting in less current flow for a given voltage.

Selenium

An element that exhibits photosensitive properties. Its resistance changes inversely with illumination.

Semiconductor

A material with electrical conductivity between that of a conductor and an insulator, used in most electronic devices.