Following the Completion of the Bank Reconciliation, an Adjusting Entry

question 131

Multiple Choice

Following the completion of the bank reconciliation, an adjusting entry was made that debited cash and credited Interest Revenue. Therefore the bank reconciliation must have included an item that was

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

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Definitions:

Director Liability

The legal responsibility of corporate directors for actions or omissions that cause harm to the company or its shareholders.

Unlawful Distributions

Financial distributions made by a company to its shareholders that violate laws or the company's own regulations, potentially harming the company or its creditors.

Usurped Corporate Opportunity

An act where an individual takes advantage of an opportunity that rightfully belongs to a corporation, typically violating fiduciary duties.

Director Liability

The legal responsibility of a company's directors to act in the best interest of the company, with potential personal legal consequences for breaches of duty.