A Company Issues a Check for $362 but Records It

question 137

Multiple Choice

A company issues a check for $362 but records it as $326. On the bank reconciliation, the $36 error should be

• A) deducted from the balance per books.
• B) added to the balance per bank.
• C) deducted from the balance per bank.
• D) added to the balance per books.

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Definitions:

Proceeds

The amount of money received from a transaction, especially after selling an asset or completing a deal.

Uniform Commercial Code

A codification of the laws governing commercial transactions in the United States, designed to make interstate commerce more efficient.

Financing Statement

A document filed by a secured party to give public notice of their interest in the property of a debtor, typically used in secured transactions.

Collateral

Assets pledged by a borrower to secure a loan or other credit, which can be seized by the lender if the borrower fails to pay.