If the Bank Records a Deposit of $800 as $80

question 166

Multiple Choice

If the bank records a deposit of $800 as $80, the error should be shown on a bank reconciliation as a(n) :

• A) deduction from the book balance of $880.
• B) deduction from the bank balance of $880.
• C) addition to the bank balance of $720.
• D) addition to the book balance of $720.

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Definitions:

FIFO Method

"First In, First Out" method, an inventory costing technique that assumes the first items added to inventory are the first ones sold.

Beginning Inventory

The value of all the inventory held by a business at the start of an accounting period.

Equivalent Units

A concept in cost accounting used to express the amount of work done on incomplete units in terms of fully completed units.

Direct Labor

The cost of labor directly involved in producing goods, excluding indirect costs like maintenance.