A Check Drawn by a Depositor for $810 in Payment

question 93

Multiple Choice

A check drawn by a depositor for $810 in payment of a liability was recorded by the depositor as $180.The $630 difference would be included on the bank reconciliation as a(n) :

• A) addition to the cash balance per books.
• B) addition to the cash balance per bank.
• C) deduction from the cash balance per bank.
• D) deduction from the cash balance per books.

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Definitions:

Buyers

Individuals or entities that purchase goods or services for personal use or for resale.

Sellers

Individuals or businesses that provide goods or services to consumers in exchange for payment.

Tax

A compulsory financial charge or some other type of levy imposed upon a taxpayer by a governmental organization in order to fund public expenditures.

Corporations' Profits

The financial earnings that remain for a corporation after all expenses, taxes, and costs have been deducted from total revenue.