In a Bank Reconciliation,a Book Error

question 73

Multiple Choice

In a bank reconciliation,a book error:

• A) may be added or deducted from the bank balance in the general ledger
• B) may be added or deducted from the bank balance on the bank statement
• C) must be added to the bank balance in the general ledger
• D) must be deducted from the bank balance in the general ledger

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Definitions:

Existing Capacity

The current maximum level of output that a company can achieve with its available resources, such as facilities, equipment, and workforce.

Variable Selling Expense

Costs incurred from selling a product that vary directly with the number of units sold, such as commissions and shipping costs.

Specialized Machine

Equipment designed for a specific manufacturing process or product, often custom-made and representing a significant fixed cost.

Contribution Margin

The amount of revenue remaining after deducting the variable costs, indicating the contribution towards the fixed costs and profits.