When Preparing a Bank Reconciliation, Which of the Following Items

question 78

Multiple Choice

When preparing a bank reconciliation, which of the following items should be added to the book balance?

• A) EFT receipts
• B) Deposits in transit
• C) Collection items
• D) Both EFT receipts and collection items

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Definitions:

Inventoriable Costs

Costs that are directly associated with the production of goods and are initially recorded as inventory, to be expensed as cost of goods sold when the goods are sold.

Rising Prices

A scenario in which the overall price level of goods and services within an economy rises over a certain period.

Ending Inventory

Ending Inventory refers to the total value of goods available for sale at the end of an accounting period, calculated as the sum of beginning inventory plus purchases minus cost of goods sold.

LIFO Method

"Last In, First Out" an inventory costing method that assumes the most recently purchased items are sold first, affecting the cost of goods sold and ending inventory valuations.