Which One of the Following Items Requires an Adjustment on the Bank

question 105

Multiple Choice

Which one of the following items requires an adjustment on the bank side of the bank reconciliation?

• A) interest earned
• B) a bank service charge
• C) a note collected by the bank
• D) deposits in transit

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Definitions:

Residual Value

Residual value is the estimated value of a fixed asset at the end of its useful life, reflecting what it can be sold for or its salvage value.

Financial Reporting

The process of producing statements that disclose an organization's financial status to management, investors, and government entities.

GAAP

Generally Accepted Accounting Principles (GAAP) are a set of rules and standards used in the United States for financial reporting, providing guidelines on how financial statements should be prepared and disclosed.

IRS

The Internal Revenue Service, a U.S. government agency responsible for tax collection and enforcement of tax laws.