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

question 35

Multiple Choice

In preparing a bank reconciliation statement for a business with a substantial bank balance,the appropriate treatment for a customer's cheque for $85 that was returned because of insufficient funds 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:

Build Rapport

The process of establishing a connection or mutual understanding between individuals or groups.

Authority

The power or right to give orders, make decisions, and enforce obedience.

Legitimate

Something that is lawful, valid, or justified according to established rules, principles, or standards.

Coercive

Involving or using force or threats to persuade someone to do something.