Kathryn's Account Is Not in Overdraft

question 19

Multiple Choice

Kathryn's account is not in overdraft. When preparing the bank reconciliation she found that the bank had incorrectly debited her account with $120. The proper procedure is to:

• A) deduct $120 from the bank balance in the general ledger and notify the bank.
• B) deduct $120 from the bank balance in the general ledger.
• C) add $120 to the bank statement balance in the bank reconciliation and notify the bank.
• D) do nothing as the bank will adjust the error when they balance.

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Definitions:

Automatic Processing

A type of cognition that occurs without conscious awareness or effort, often involving routine tasks.

Encoded

The process of converting information into a particular form, often for storage, transmission, or processing in communications and information technology.

Tournament Game

A competition involving a series of games or rounds, where the outcome determines the advancement to subsequent rounds.

Effortful Processing

A type of information processing that requires attention and conscious effort in order to encode or remember information.