If a Check Correctly Written and Paid by the Bank

question 35

Multiple Choice

If a check correctly written and paid by the bank for $749 is incorrectly recorded in the company's books for $794,how should this error be treated on the bank reconciliation?

• A)Subtract $45 from the bank's balance.
• B)Add $45 to the bank's balance.
• C)Subtract $45 from the book balance.
• D)Add $45 to the book balance.
• E)Subtract $45 from the bank's balance and add $45 to the book's balancE.$749 - $794 = $45 too much deducted from the company's cash account balance that must be added back to cash.

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Definitions:

Conditioning

A process of behavior modification in which a subject learns to respond in a desired manner to a previously neutral stimulus that has been repeatedly presented along with an unconditioned stimulus that elicits the desired response.

Behaviourist

Referring to the school of psychology that focuses on observing and controlling behavior as the main source of psychological research and theory.

Historical View

The perspective that looks at past events and trends to understand how they influence the present and potentially the future.

Religious

Relating to or devoted to the belief in the worship of a god or gods, or the practices and rituals associated with such belief.