The Balance Shown in the August Bank Statement of Colt

question 152

Multiple Choice

The balance shown in the August bank statement of Colt Company was $23,200. After examining the August bank statement and items included with it, the company's accountant found: What is the amount of cash that should be reported in the balance sheet as of August 31?

• A) $20,700.
• B) $17,200.
• C) $18,700.
• D) $22,200.

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Definitions:

Payables

Amounts owed by a company to suppliers or creditors for goods and services received but not yet paid for.

Marketable Securities

Liquid financial instruments that can be quickly converted into cash at a reasonable price.

Companies

Entities engaged in commercial, industrial, or professional activities with the goal of generating profits.

Line of Credit

A flexible loan from a bank or financial institution that allows a borrower to draw funds up to a specified limit at any time, with interest typically charged only on the amount drawn.