A Check for $235 Is Incorrectly Recorded by a Company

question 173

Multiple Choice

A check for $235 is incorrectly recorded by a company as $253. On the bank reconciliation the $18 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:

After-Tax Cost

The cost of a transaction or financial product after accounting for the effects of taxes on its overall expense.

Retained Earnings

The portion of a company's profits that is retained and reinvested in the company rather than distributed to shareholders as dividends.

Tax Treatments

The specific methods or rules applied in calculating tax obligations or entitlements for different forms of transactions or entities.

Long-Term Debt

Financial obligations of a company that are due more than one year in the future, often used to finance operations, acquire assets, or undertake new projects.