Designs on You the Following Information Relates to the Company's

question 63

Multiple Choice

Designs on You The following information relates to the company's May bank reconciliation:
$\begin{array}{ll} \text { Bank statement balance } &\$ 5,000 \\ \text { Unadjusted cash balance from the company records } &? \\ \text { Deposit in trensit } &1,000 \\ \text { Outstanding checks } &500 \\ \text { Bank service charges } &50 \\ \text { Interest earned on the bank account } &10 \\ \text { Customen's NSF check returned by the bank } &25\end{array}$ In addition,a check was recorded in the accounting records as $1,200 but the correct amount as recorded by the bank was only $1,000.

-Refer to Designs on You.What is the net amount of the adjustments to the company's cash balance as a result of the bank reconciliation process?

• A)$210 increase
• B)$135 increase
• C)$135 decrease
• D)$65 decrease

---

Definitions:

Return On Sales Ratio

A financial metric that calculates how efficiently a company is generating profits from its revenue, by dividing operating profit by net sales.

Financial Statements

Formal records that outline the financial activities and condition of a business, individual, or other entity.

Common Shares

Equity shares that represent ownership in a company, giving holders voting rights and a claim on a portion of the company's profits through dividends.

Fixed Asset Turnover Ratio

A financial indicator that measures a company's ability to generate net sales from fixed-asset investments, specifically property, plant, and equipment.