To Arrive at an Accurate Balance on a Bank Reconciliation

question 40

Multiple Choice

To arrive at an accurate balance on a bank reconciliation statement,a debit memorandum for a customer check marked NSF should be

• A) added to the bank statement balance.
• B) added to the book balance.
• C) deducted from the bank statement balance.
• D) deducted from the book balance.

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Definitions:

UCC Obligation

A term referring to responsibilities or duties that are established under the Uniform Commercial Code, a comprehensive set of laws governing commercial transactions in the United States.

Third-party Financing

Refers to funding provided by an entity that is neither the borrower nor the direct provider of goods or services, often used in sales agreements to facilitate purchases.

Perfect Tender Rule

A principle in contract law requiring goods delivered under a sales contract to exactly meet the terms of the agreement.

Contract Specifications

Detailed, precise descriptions of the terms, conditions, and obligations agreed upon by parties in a contract, often defining the scope, quality, and timelines of work or services.