How Is a Business's Certified Check Treated in Doing the Business's

question 35

Multiple Choice

How is a business's certified check treated in doing the business's bank reconciliation?

• A) It is added to the bank balance.
• B) It is subtracted from the book balance.
• C) It is subtracted from the bank balance.
• D) It is not included in doing the bank reconciliation.

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Definitions:

SEC

The Securities and Exchange Commission (SEC) is a U.S. government agency that oversees securities transactions, activities of financial professionals and mutual fund trading to prevent fraud and intentional deception.

AICPA

The American Institute of Certified Public Accountants, a professional organization for Certified Public Accountants (CPAs) in the United States.

Limited Liability Company

A business structure in the United States that provides its owners with limited liability while allowing them to enjoy the tax and operational flexibility of a partnership.

Business Organizations

Formal entities set up for the purpose of conducting trade or providing services, following a particular operating structure and goals.