In the Reconciliation of the June Bank Statement,a Deposit Made

question 17

Multiple Choice

In the reconciliation of the June bank statement,a deposit made on June 30 did not appear on the June bank statement.How is this deposit in transit shown on the bank reconciliation?

• A)Subtracted from the unadjusted book balance.
• B)Added to the unadjusted book balance.
• C)Subtracted from the unadjusted bank balance.
• D)Added to the unadjusted bank balance.

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Definitions:

Option Smirk

A pattern on the implied volatility graph for options across different strike prices that shows asymmetric volatility, often indicating market anticipation of movement.

Black-Scholes Option

A mathematical model used to price European options and derivatives by estimating the variation over time of financial instruments.

Implied Volatility

The market's forecast of a likely movement in a security's price, often derived from the price of its options.

Binomial Option Model

A mathematical model used to price options by breaking down the option's life into discrete time intervals and calculating the value at each step.