In Preparing a Bank Reconciliation Statement for a Business with a Substantial

question 29

Multiple Choice

In preparing a bank reconciliation statement for a business with a substantial bank balance,the appropriate treatment for a customer's note receivable for $1500 plus $50 interest collected by bank and appearing on the bank statement is to:

• A) add it to the balance as per bank statement.
• B) deduct it from the balance as per bank statement.
• C) add it to the balance per company records.
• D) deduct it from the balance per company records.

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Definitions:

General Adaptation Syndrome

A three-stage physiological response to stress described by Hans Selye, consisting of alarm, resistance, and exhaustion phases.

Alarm Reaction

The initial stage of the General Adaptation Syndrome, describing the body's immediate reaction upon facing a threatening situation or stressor.

Physiological Arousal

The body's response to stimuli, resulting in increased heart rate, blood pressure, and energy preparation, often associated with stress or excitement.

Violin Solo

A musical performance piece designated for a single violinist, often accompanied by a piano, chamber group, or orchestra.