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:

Liability Record

Liability Record is a documentation or entry that reflects the obligations or debts of a company that are due to be paid to others.

Forward Contract

A customized contract between two parties to buy or sell an asset at a specified price on a future date.

Gross Method

An accounting practice where purchases are recorded at their gross price, without deducting any discounts, which are recorded if and when they are received.

Exchange Rates

The rate at which one currency can be exchanged for another currency, influencing international trade and finance.