A Check Payment for $658 Was Incorrectly Entered in the Cash

question 25

Multiple Choice

A check payment for $658 was incorrectly entered in the Cash account as $856.Which of the following adjustments needs to be made?

• A) decrease the book balance
• B) decrease the bank statement balance
• C) increase the book balance
• D) increase the bank statement balance

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Definitions:

Scratch-and-Save

A promotional discount method where customers scratch a card to reveal a discount or prize.

Profit

The financial gain realized when the revenue generated from a business activity exceeds the expenses, costs, and taxes involved in sustaining the activity.

Rate of Markdown

The percentage decrease from the original price to the sale price.

Operating Expenses

Costs associated with the day-to-day operations of a business or organization.