The Amount of Cash Related to a Particular Bank Checking

question 1

Multiple Choice

The amount of cash related to a particular bank checking account that is shown on the balance sheet at December 31 is:

• A)the cash balance shown on the bank's records at the close of business on December 31, without further adjustments.
• B)the cash balance shown in the company's general ledger account for this checking account at the close of business on December 31, without further adjustments.
• C)the cash balance shown in the general ledger account for this checking account as of the close of business on December 31, after recognizing any outstanding checks and/or deposits in transit from the December 31 bank account reconciliation.
• D)the cash balance shown in the general ledger account for this checking account as of the close of business on December 31, after recognizing any bank service charges and/or interest income from the December 31 bank account reconciliation.

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Definitions:

Goods and Services

The physical items (goods) and intangible assistance or activities (services) that fulfill the needs or wants of consumers, forming the basis of all economic activities.

Comparative Advantage

The capacity of a country or firm to produce a particular good or service at a lower marginal and opportunity cost over another.

Absolute Advantage

The ability of a country or entity to produce a good or service more efficiently (using fewer resources) than another country or entity.

Specialization

Refers to the process of focusing resources on specific activities, tasks, or areas of expertise to increase efficiency and productivity.