Fact Pattern 27-1A (Questions A17 and A18 Apply)

question 20

Multiple Choice

Fact Pattern 27-1A (Questions A17 and A18 apply)
Mike loses his National Bank access card.He realizes his loss the next day but waits a week to call National.Meanwhile,Opal finds and uses Mike's card to withdraw $3,000 from Mike's account.
-Refer to Fact Pattern 27-1A.Mike is responsible for

• A)$0.
• B)$50.
• C)$500.
• D)$3,000.

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Definitions:

Journal Entries

The method of recording financial transactions where each transaction is noted in two accounts in the ledger to maintain the accounting equation's balance.

Bank Reconciliation

The process of matching the balances in an entity's accounting records for a cash account to the corresponding information on a bank statement, to ensure accuracy and completeness of the records.

Erroneously Charged

Incorrectly or mistakenly billed for goods or services, leading to inaccurate financial transactions.

Bank Statement Balance

The ending cash balance as recorded in the bank's records at the end of a reporting period.