A Check Drawn by a Company for $340 in Payment

question 65

Multiple Choice

A check drawn by a company for $340 in payment of a liability was recorded in the journal as $430. This item would be included on the bank reconciliation as a (n)

• A) addition to the balance per the company's records
• B) addition to the balance per the bank statement
• C) deduction from the balance per the bank statement
• D) deduction from the balance per the company's records

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Definitions:

Management Role

A Management Role encompasses the responsibilities and duties exercised by an individual in a managerial position to plan, organize, lead, and control resources to achieve specific objectives.

Investment Bankers

Professionals who advise companies on financial matters, including mergers and acquisitions, and help them to raise capital by issuing stocks or bonds.

Initial Public Offering

The first time that the stock of a private company is offered to the public.

Venture Capitalist

An investor who provides capital to start-ups or small companies with high growth potential in exchange for equity stakes.