If a Company Erroneously Records a $500 Deposit as $400

question 20

Multiple Choice

If a company erroneously records a $500 deposit as $400 in its books,which of the following must occur when reconciling the bank statement?

• A)The company will have to increase the balance per the bank statement by $100.
• B)The company will have to increase the balance per the books by $100.
• C)The company will have to decrease the balance per bank statement by $100.
• D)The company will have to decrease the balance per the books by $100.

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Definitions:

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