A Check Drawn by a Company in Payment of a Voucher

question 16

Multiple Choice

A check drawn by a company in payment of a voucher for $635 was recorded in the journal as $365. 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:

Production Budget

A financial plan that estimates the number of units to be produced in a future period, based on sales forecasts and inventory levels.

Sales Budget

A financial plan that estimates the expected revenues from sales over a specific period.

Budgeted Accounts Receivable

The forecasted amount of money owed to a business by its customers for goods or services provided on credit.

Credit Sales

Sales for which payment is not received at the time of sale but is expected to be paid at a later date.