1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Gekata [30.6K]
4 years ago
14

If a check correctly written and paid by the bank for $408 is incorrectly recorded on the company's books for $480, the appropri

ate treatment on the bank reconciliation would be to deduct $72 from the bank's balance. deduct $408 from the book's balance. add $72 to the bank's balance. add $72 to the book's balance.
Business
1 answer:
vodka [1.7K]4 years ago
8 0

Answer:

The correct answer is add $72 to the book's balance.

Explanation:

Bank reconciliation is a way of identifying discrepancies between the cash book balance (company's books) and the bank balance (balance per bank statement). The discrepancies can be as a result of erroneous posting, deposit in transit, outstanding checks, etc.

In the instance of the question, there was an erroneous posting in the cash book of $72 ($480 - $408). Instead of crediting cash book by $408, it was rather credited by $480 - meaning that the credit was overstated by $72. <em>To correct this erroneous posting, we have to add back $72 to the cash book balance.</em>

You might be interested in
When preparing a direct materials budget, beginning inventory for raw materials should be added to production needs, and desired
nikitadnepr [17]

Answer:

False

Explanation:

While preparing the raw material budget for the period we calculate the total purchases to be made in the period concerned to meet the demand of raw material.

Demand in the period concerned = Total raw material required in production in current period + Total balance of inventory to be kept as closing inventory of current period - The opening available balance of inventory.

This is equal to the purchases to be made.

Thus, closing inventory is added and opening is deducted.

Therefore, the statement is question is not correct and is therefore, false.

6 0
4 years ago
Axle Corporation acquires 100% of Drexel Corporation's stock from Drexel's shareholders for $500,000 cash. Drexel Corporation ha
kotykmax [81]

Answer:

C) $500,000

Explanation:

According to Section 1012, the basis for stock is the purchase cost of stock.

Axle Corporation's basis in the Drexel Corporation stock is $500,000 .

8 0
3 years ago
larry Nelson holds 1,000 shares of General Electric (GE) common stock. As a stockholder, he has the right to be involved in the
Nataly [62]

Answer:

False

Explanation:

Preferred shareholders are category of shareholders of company that have priority over the income of the company. This implies that whenever dividend is declared, preferred shareholders are paid first before common shareholders are paid.

This means that common shareholders are paid dividends whatever is left out of dividends declared after preferred shareholders have been paid.

Therefore, Larry will NOT receive dividends before preferred stockholders.

6 0
3 years ago
Which scenario would you not have to worry about your credit score? applying for a credit card
SpyIntel [72]

Answer:

none of the above

Explanation:

The credit score is used for all the options listed.

8 0
4 years ago
Factor income __________.a. consists largely of interest, dividends, and other income on foreign investments. b. is a theoretica
alisha [4.7K]

Answer:

a) Consists largely of interest, dividends, and other income on foreign investments.

Explanation:

Factor income is all the income that we receive from selling at least one of the factors of production.

  • Factor income received from land ⇒ rent
  • Factor income received from labor ⇒ wages and salaries
  • Factor income received from capital ⇒ profit

When we are calculating the balance of payments of a country, the factor income that we must include comes from capital invested in foreign countries and the income generated from capital is called profit and it consists mainly of interests and dividends.

6 0
4 years ago
Other questions:
  • ​(Identifying spontaneous,​ temporary, and permanent sources of​ financing) Classify each of the following sources of new financ
    9·1 answer
  • Choose and describe a business that you would expect to have highly liquid assets and share a photo of that business (or company
    6·1 answer
  • Suppose that the central bank must follow a rule that requires it to increase the money supply when the price level falls and de
    8·1 answer
  • The current exchange rate is​ $1= euro€1. suppose that u.s. real interest rates increaseu.s. real interest rates increase. what
    8·1 answer
  • James has the choice of the following two Treasury Bills: A Government of Canada Treasury Bill for 98,000. The Canadian Treasury
    15·1 answer
  • Lakeland Company is considering the purchase of equipment for $150,000. The equipment will expand the Company's production and i
    6·1 answer
  • The Kelly family of three has a new car and rents an apartment with nice furniture and appliances. What types of insurance shoul
    8·1 answer
  • Inventory records for Dunbar Incorporated revealed the following: Date Transaction Number of Units Unit Cost Apr. 1 Beginning in
    11·1 answer
  • What kind of business organization are caleb and anna operating under now?
    14·1 answer
  • Your portfolio has grown from $2500 to $3800 what is the percent of the growth rate
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!