Which of the Following Is NOT a Reason Why a Bank

question 36

Multiple Choice

Which of the following is NOT a reason why a bank reconciliation is necessary?

• A)The company has transactions that the bank has not recorded.
• B)Petty cash has a low balance.
• C)The bank has transactions that the company has not recorded.
• D)Reconciliations provide a control over cash.

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Definitions:

Surplus

The amount by which revenue exceeds expenses in a given period, indicating a positive financial state.

Share Option

A right granted by a company to its employees or executives to purchase shares in the company at a preset price, often used as part of compensation packages.

Exercise Price

The specified price at which an option holder can buy (call) or sell (put) the underlying security or commodity.

Obligation

A duty or responsibility to act or perform in a certain way, often legally binding, resulting from a contract, law, or moral responsibility.