The Following Information Is Available for Ellen's Fashions Company for the Current

question 55

Multiple Choice

The following information is available for Ellen's Fashions Company for the current month. $$\begin{array} { | l | r | } \hline \text { Book balance end of month } & \$ 7,000 \\\hline \text { Outstanding checks } & 725 \\\hline \text { Deposits in transit } & 4,000 \\\hline \text { Service charges } & 80 \\\hline \text { Interest revenue } & 45 \\\hline\end{array}$$ What is the adjusted book balance on the bank reconciliation?

• A) $10,150
• B) $7,690
• C) $6,875
• D) $6,965

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Definitions:

Decentralized Inventory

An inventory management strategy where stock is kept in multiple locations to reduce delivery times and increase service levels.

Facility Layout

The arrangement of physical elements in a factory or workspace to optimize operations, including machinery, equipment, and staff.

Space Versus Equipment

The trade-off or balance between the physical area available for operations and the machinery or equipment required to produce goods or services.