When Reconciling the Bank Ledger Account and the Bank Statement

question 22

Multiple Choice

When reconciling the bank ledger account and the bank statement, if both are in overdraft, unpresented cheques will be:

• A) deducted from the general ledger bank balance.
• B) added to the general ledger bank balance.
• C) added to the bank statement balance in the reconciliation.
• D) deducted from the bank statement balance in the reconciliation.

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Definitions:

Depreciation

The allocation (spreading) of the cost of an asset (such as an auto or equipment) over its expected useful life.

Square Footage

A measurement of area expressed in square feet, often used to determine the size of a room or building.

Direct Expenses

Costs that can be precisely linked to the production or sale of particular goods or services, crucial for setting product prices.

Salaries

The regular payments made by an employer to an employee, often expressed as an annual sum.