A Check That Was Outstanding on Last Period's Bank Reconciliation

question 166

Multiple Choice

A check that was outstanding on last period's bank reconciliation was not included with the cancelled checks returned by the bank this period.As a result,in preparing this period's reconciliation,the amount of this check should be:

• A)Added to the book balance of cash
• B)Deducted from the book balance of cash
• C)Added to the bank balance of cash
• D)Deducted from the bank balance of cash
• E)Ignored in preparing the period's bank reconciliation

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Definitions:

Claim in Recoupment

A legal claim made in defense to a counterclaim, aiming to offset or reduce the amount of damages sought by the original claimant.

Personal Defense

Legal arguments or claims that an individual can use to avoid enforcement of a contract or demand based on issues personal to him or her.

Real Defense

Legitimate legal reasons that can be used to avoid the enforcement of a contract or negate an obligation.

Obligated

Required by a legal or moral duty to do something or responsible for an action.