If a Bank Statement Includes an EFT Receipt of $200

question 39

Multiple Choice

If a bank statement includes an EFT receipt of $200 for interest,the journal entry to record this reconciling item should include a:

• A)debit to Cash for $200 and a credit to Interest Revenue for $200.
• B)debit to Accounts Receivable for $200 and a credit to Interest Revenue for $200.
• C)debit to Interest Revenue for $200 and credit to Cash for $200.
• D)debit to Interest Expense for $200 and credit to Prepaid Interest for $200.

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Definitions:

Cutthroat Competition

An extremely aggressive competition where companies use strategies to undercut their rivals' prices.

Cartel

A coalition of producers or vendors aimed at keeping prices elevated by limiting competitive practices.

Concentration Ratio

Concentration ratio is a measure of the total output produced in an industry by a given number of firms, indicating the level of market competition.

Sales

The activities involved in selling goods or services to consumers or other businesses, generating revenue.