A Check Drawn by a Company for $270 in Payment

question 25

Multiple Choice

A check drawn by a company for $270 in payment of a liability was recorded in the journal as $720. This item would be included on the bank reconciliation as a(n)

• A) addition to 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) deduction from the balance per the company's records

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Definitions:

CICA Handbook

A set of guidelines and standards for accounting practices in Canada, as published by the Canadian Institute of Chartered Accountants.

Government NFP Organizations

Nonprofit entities affiliated with the government, focusing on public benefit activities without the intention of distributing profits to members or leaders.

Public Sector Accounting Handbook

A comprehensive guide detailing accounting practices, standards, and principles to be applied in the public sector.

Hong Kong-Based Company

A business entity registered or incorporated in Hong Kong, operating under the legal and regulatory framework of Hong Kong.