Which of the Following Is Correct with Respect to a Bank

question 116

Multiple Choice

Which of the following is correct with respect to a bank reconciliation?

• A)Subtract interest earned from the bank's balance.
• B)Add service charge to the company's balance.
• C)Subtract NSF checks from the company's balance.
• D)Add deposits outstanding to the company's balance.

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Definitions:

Credit Policy

A set of guidelines that a company uses to determine the credit terms and conditions for its customers.

Economic Order Quantity

is a formula used by businesses to determine the optimal amount of inventory to order at one time, aiming to minimize holding and ordering costs.

Variable Cost

Costs that vary directly with the level of production or service delivery.

Carrying Cost

Expenses associated with holding or storing inventory, including insurance, storage, and opportunity costs of invested capital.