Which One of the Following Procedures Is not Part of Preparing

question 159

Multiple Choice

Which one of the following procedures is not part of preparing a bank reconciliation of a checking account?

• A) Tracing deposits listed on the bank statement to the books to identify deposits in transit
• B) Arranging canceled checks in numerical order and tracing them to the books to identify outstanding checks
• C) Identifying items added on the bank statement which have not been recorded as cash receipts by the company
• D) Preparing adjustments to reverse the transactions recorded for checks that are still outstanding

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Definitions:

Optimal Amount

The most efficient, effective, or desirable quantity of a good or resource to achieve a specific goal or maximize utility.

R&D

Research and Development; activities in businesses and organizations aimed at gaining new knowledge and applying it to develop new products, services, or processes.

Interest-Rate Cost-of-Funds

The cost of obtaining funds to borrow, typically described as an interest rate, representing the lender's compensation for the risk and time value of money.

Expected Rate of Return

An estimate of the profitability or yield of an investment, accounting for its potential risks and rewards.