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

question 34

Multiple Choice

In preparing a bank reconciliation statement for a business with a substantial bank balance,the appropriate treatment for $650 that a customer paid directly into the company's bank account 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:

Ex Parte Milligan

1866 Supreme Court case that declared it unconstitutional to bring accused persons before military tribunals where civil courts were operating.

Military Tribunals

Special courts designed to try members of the armed forces or enemy combatants, often distinguished from civilian courts for their focus on military law and discipline.

Civil Courts

Courts responsible for resolving non-criminal disputes, including cases involving contracts, property, and family law among others.

Gold Standard

A monetary system in which the standard economic unit of account is based on a fixed quantity of gold, enabling the conversion of currency into a certain amount of gold on demand.