When Reconciling the Ledger with the Bank Statement (Assuming a Positive

question 44

Multiple Choice

When reconciling the ledger with the bank statement (assuming a positive bank balance) a returned (dishonoured) cheque should be:

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

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Definitions:

Break-Even Point

The financial state where total costs equal total revenues, resulting in no net loss or gain for the business.

Variable Costs

Spendings that move in tandem with the level of output or number of sales.

Sales Dollars

The total revenue generated from the sale of goods or services before any expenses are deducted.

Break-Even Point

The production level or sales volume at which total revenues equal total expenses, resulting in no net loss or gain.