A Check Was Written by a Business for $507 but Was

question 62

Multiple Choice

A check was written by a business for $507 but was recorded in the journal as $705.How would this error be included on the bank reconciliation?

• A) a deduction on the bank side
• B) an addition on the book side
• C) an addition on the bank side
• D) a deduction on the book side

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Definitions:

Tax Bracket

The range of incomes taxed at a specified rate by the government, part of a progressive tax system where tax rates increase with income.

Corporate Bond

A debt security issued by a corporation to raise capital, obligating the issuer to pay interest and repay the principal at a specified date.

Investment Strategy

An investor's plan of distributing assets among various investments aimed at achieving a specific financial goal.

Dividends

Payments made by a corporation to its shareholder members from the company's earnings.