Which of the Following Statements Relating to Dishonoured Cheques Is

question 31

Multiple Choice

Which of the following statements relating to dishonoured cheques is incorrect?

• A) They appear as credits on the bank statement.
• B) They are cheques from debtors deposited into the firm's bank account but not paid by the drawer's bank due to lack of funds or for other reasons.
• C) They are not listed in the bank reconciliation.
• D) They are adjusted for by entering a negative amount into the cash receipts journal.

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Definitions:

Machine-Hours

A measure of production time, reflecting the total hours machines are operated in the manufacturing process.

Molding

Molding is a process of forming a material using a rigid frame or model called a mold, commonly used in manufacturing for creating a variety of parts and components.

Customizing

Modifying or tailoring a product or service to meet specific customer needs or requirements.

Manufacturing Overhead

All indirect costs associated with the production process, including utilities, maintenance, and factory equipment depreciation.