When Reconciling a Bank Account with a Positive Balance, Bank

question 56

Multiple Choice

When reconciling a bank account with a positive balance, bank fees and interest charged by the bank are:

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

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Definitions:

Regressive Income Tax

A tax system where the tax rate decreases as the taxpayer's income increases, placing a higher relative burden on lower-income earners.

Laffer Curve

A theoretical representation of the relationship between government revenue raised by taxation and the rate of taxation, suggesting an optimal tax rate for maximizing revenue.

Progressive Income Tax

A tax system where the tax rate increases as the taxable amount increases, meaning higher income earners pay a larger percentage of their income in taxes compared to lower income earners.

Progressive Income Tax

A tax system where the tax rate increases as the taxable amount increases, placing a higher financial burden on wealthier individuals.