Which of the Following Items Will NOT Appear as Deductions

question 7

Multiple Choice

Which of the following items will NOT appear as deductions on a bank statement?

• A) NSF checks
• B) EFT
• C) Service Charge
• D) Deposits

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Definitions:

Lower-of-Cost-Or-Market

An accounting principle that dictates inventory should be recorded at either its historical cost or its current market price, whichever is lower.

Net Income

The amount of money that remains from revenues after all expenses, taxes, and costs have been subtracted; a crucial indicator of a company's profitability.

Ending Inventory

The value of goods available for sale at the end of an accounting period.

Owner's Equity

The residual interest in the assets of a business after all liabilities have been deducted, often referred to as shareholder's equity or net worth.