In Comparing the Canceled Checks on the Bank Statement with the Entries

question 194

Multiple Choice

In comparing the canceled checks on the bank statement with the entries in the accounting records,it is found that check number 2889 for December's utilities was correctly written and drawn for $970 but was erroneously entered in the accounting records as $790.The journal entry to adjust the books for the bank reconciliation would include which of the following for this situation?

• A)$180 decrease to Cash and a $180 decrease to Utility Expense
• B)$180 increase to Cash and a $180 increase to Utility Expense
• C)$180 decrease to Cash and a $180 increase to Utility Expense
• D)$180 increase to Cash and a $120 decrease to Utility Expense
• E)$970 increase to Cash and a $790 decrease to Utility Expense

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Definitions:

Class Conflict

The conflict and opposition present in society resulting from the differing economic interests and aspirations of people from various social classes.

Ideology

An arrangement of concepts and standards, mainly one that supports the structure of political or economic theories and policies.

Monetary Bailouts

Financial assistance provided to a failing business or economy to save it from collapse.

Laissez-Faire Approach

An economic principle advocating minimal government intervention in the marketplace and allowing private sector freedom in economic decisions.