If a Check Correctly Written and Paid by the Bank

question 134

Multiple Choice

If a check correctly written and paid by the bank for $794 is incorrectly recorded in the company's books for $749, 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.$794 - 749 = $45

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Definitions:

Labor Force

The total number of people available to work, including both the employed and those seeking employment but currently unemployed.

Net Investment

The total amount spent on new capital assets minus the depreciation on existing capital assets.

Autonomous Consumption

The part of consumption that does not change with income levels, representing basic necessities one must purchase regardless of income.

Long-Run Aggregate Supply Curve

A graphical representation showing an economy's potential output when all prices, including wages, can fully adjust to changes in the economic environment.