All the Following Are Steps Included in the Preparation of the Bank

question 157

Multiple Choice

All the following are steps included in the preparation of the bank reconciliation except:

• A)Comparing deposits listed on the bank statement with the deposits shown in the accounting records.
• B)Comparing checks listed on the bank statement with corresponding entries in the accounting records.
• C)Deducting any debit memoranda from the balance on the bank statement.
• D)Preparing journal entries for any adjustments to the depositor's records.

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Definitions:

Depreciable Asset

An asset that loses value over time due to wear and tear, and for which depreciation can be applied in accounting to spread its cost over its useful life.

Tax Consequence

The financial effects that taxes have on various financial decisions, affecting net investment income or costs.

Marginal Tax Rate

Marginal Tax Rate is the rate at which the last dollar of income is taxed, reflecting the percentage of tax applied to your next dollar of income.

Cash Flow Estimate

An assessment of the amount of money expected to flow in and out of a business over a specific period.