No Journal Entries Are Required for the Reconciling Items on the Bank

question 230

Multiple Choice

No journal entries are required for the reconciling items on the bank side because ________.

• A) those transactions have already been recorded in the company's journal
• B) the adjusted balances on both sides are the same amounts
• C) the amounts are immaterial
• D) those transactions are already included in the bank balance

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Definitions:

Throughput

The quantity of goods and materials passing through a system or process in a given period, often used to measure the efficiency of production processes.

Inventory Rate

The speed at which inventory is sold or used over a particular period, often indicating the efficiency of inventory management.

Review Interval

The scheduled period between evaluations of a process, system, or performance, allowing for adjustments and improvements.

Safety Inventory Levels

Quantities of stock kept on hand to protect against variability in demand or supply, ensuring product availability.