A Check for $235 Is Incorrectly Recorded by a Company

question 173

Multiple Choice

A check for $235 is incorrectly recorded by a company as $253. On the bank reconciliation the $18 error should be

• A) deducted from the balance per books.
• B) added to the balance per bank.
• C) deducted from the balance per bank.
• D) added to the balance per books.

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Definitions:

Rational Consumer

An economic concept where consumers aim to maximize their utility or satisfaction from their available resources.

Demand for Good

The quantity of a particular good or service that consumers are willing and able to purchase at various prices during a specified time period.

Square Feet

A unit of area measurement equivalent to the area of a square with sides of one foot in length.

Quasilinear Preferences

Preferences where utility is linear in one argument, usually money, allowing for easy analysis of changes in wealth while other goods are evaluated non-linearly.