A Cheque Was Written by a Business for $205,but Was

question 4

Multiple Choice

A cheque was written by a business for $205,but was recorded in the cash payments journal as $502.How would this error be included on the bank reconciliation?

• A)A deduction on the book side
• B)An addition on the bank side
• C)A deduction on the bank side
• D)An addition on the book side

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Definitions:

Maturities

The dates on which the principal amounts of financial instruments or securities are due to be paid back.

Consumer Savers

Individuals or entities that prioritize saving over spending, often seeking to maximize their financial well-being and future security.

Financial System

An intricate network of financial institutions, markets, and instruments that facilitate the exchange of funds and allocation of resources in an economy.

Business Investors

Individuals or entities that allocate capital with the expectation of receiving financial returns, typically into companies or projects.