If a Check Correctly Written and Paid by the Bank

question 128

Multiple Choice

If a check correctly written and paid by the bank for $272 is incorrectly recorded in the company's books for $227,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.$272 - $227 = $45 not enough deducted from the company's cash account balance that must be subtracted from cash.

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Definitions:

White Iron

A hard, brittle form of cast iron, made by cooling the casting quickly, with a microstructure of cementite and pearlite.

Cold Shorting

A material property where a metal becomes brittle at low temperatures, making it prone to cracking when subjected to stress.

Machining Lugs

Protrusions on a part designed to provide additional material for clamping or holding during machining processes.

Castings

The process of pouring liquid material into a mold to solidify and form a specific shape, commonly used with metals and plastics.