A Check Drawn by a Company in Payment of a Voucher

question 182

Multiple Choice

A check drawn by a company in payment of a voucher for $965 was recorded in the journal as $695. This item would be included in the bank reconciliation as a (n)

• A) deduction from the balance per the company's records
• B) addition to the balance per the bank statement
• C) deduction from the balance per the bank statement
• D) addition to the balance per the company's records

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Definitions:

Physical Count

A physical count involves manually counting the actual inventory to verify accuracy against inventory records, often used for audit purposes or to correct discrepancies.

Physical Count

The process of manually counting and verifying the quantities of inventory on hand at a specific point in time.

Inventory Records

Documentation that tracks the quantities, locations, and statuses of products a company has in stock.

Current Costs

The costs or expenses associated with the acquisition, production, or maintenance of assets and services at present market prices.