Which of the Following Would Be Subtracted from the Ledger

question 30

Multiple Choice

Which of the following would be subtracted from the ledger balance of cash when preparing a bank reconciliation?

• A) deposit in transits.
• B) outstanding checks.
• C) notes collected by the bank.
• D) bank service charges.

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Definitions:

Times Interest Earned Ratio

A financial metric assessing a company's ability to meet its debt obligations, calculated as earnings before interest and taxes divided by interest expense.

Acid-test Ratio

A liquidity ratio that measures a company’s ability to pay off its current liabilities with quick assets, excluding inventory.

Accounts Receivable Turnover

A financial ratio that measures the efficiency of a company in collecting its receivables or the credit it has extended to customers.

Inventory Turnover

A ratio indicating how many times a company's inventory is sold and replaced over a specific period.