If a Bookkeeper Mistakenly Records a Disbursement as $36 Instead

question 46

Multiple Choice

If a bookkeeper mistakenly records a disbursement as $36 instead of the correct amount of $63, the error should be shown on the bank reconciliation as a:

• A) $27 addition to the books.
• B) $27 deduction from the books.
• C) $36 addition to the books.
• D) $36 deduction from the books.

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Definitions:

Inventory

The goods and materials a business holds for the ultimate goal of resale or repair.

Benchmarking

The act of measuring a company's operations and performance indicators against the industry's highest standards or optimal practices.

Industry Average

The standard or average benchmark of performance, costs, or pricing for businesses within a specific industry.

Competitive Average

A benchmarking tool that compares a company's performance metrics with those of its competitors to identify areas for improvement.