Business, 15.11.2019 23:31 alliuhhh0

If a check written by a firm is not canceled by the bank and returned with the month's bank statement, the firm should:
multiple choice
a. make no adjustment when preparing the bank reconciliation.
b. immediately notify the bank requesting that it correct its records.
c. adjust the balance in the firm's checkbook to reflect the data that appears in the bank's records.
d. consider this check as outstanding when preparing the bank reconciliation.

Answers: 3

Show answers

Answers

Answer from: hollandhogenson

C. adjust the balance in the firm's checkbook to reflect the data that appears in the bank's records.

Explanation:

The bank reconciliation statement is prepared by the firm to reconcile the balance stated by the bank and that recorded in the firm's books. The bank balance in the firms books may differ from that recorded by the bank. The reasons for this is usually due to the recognition of some transaction by the firm that are yet to be recognized by the bank or transactions recorded by the bank, yet to be recognized in the firm's book.

Examples of such are unpresented cheques, uncredited lodgements etc. The difference are usually said to have arising as a result of a timing difference in recognition of transactions impacting the firm's account with the bank by both parties.

Considering the options;

A. is not right as the cheque has been returned. This will result in a difference between the book balance and the bank balance as the bank would not record the cheque but this would have been recorded by the firm.

B. The bank must have had a legitimate reason for returning the cheque. As such the cheque has to be honored first by the bank before being recognized. In light of this, option B is not right as the difference in balance per bank and per the firm would not have been corrected

D. Since the cheque has been returned by the bank, it is no longer outstanding as the cheque is no longer with the bank and as such it is known to the firm that the transaction for the cheque has failed to pull through.

C. With the cheque returned already, meaning it is no longer issued, necessay adjustments should be made in the firm's checkbook to reflect the data that appears in the bank's records.

Hence Option C is the appropriate action to be taken by the firm.

Answer from: Quest

Ilike the one in the middle
Which watch should i wear to my interview? ik it has nothing to do with the whole school thing.

Answer from: Quest

Hello! i️ believe a.) is the correct answer. : )

Another question on Business

Business, 21.06.2019 16:00

Navel county choppers, inc., is experiencing rapid growth. the company expects dividends to grow at 19 percent per year for the next 8 years before leveling off at 5 percent into perpetuity. the required return on the company’s stock is 10 percent. if the dividend per share just paid was $1.52, what is the stock price?

Answers: 2

Answer

Business, 22.06.2019 11:10

Wilson company paid $5,000 for a 4-month insurance premium in advance on november 1, with coverage beginning on that date. the balance in the prepaid insurance account before adjustment at the end of the year is $5,000, and no adjustments had been made previously. the adjusting entry required on december 31 is: (a) debit cash. $5,000: credit prepaid insurance. $5,000. (b) debit prepaid insurance. $2,500: credit insurance expense. $2500. (c) debit prepaid insurance. $1250: credit insurance expense. $1250. (d) debit insurance expense. $1250: credit prepaid insurance. $1250. (e) debit insurance expense. $2500: credit prepaid insurance. $2500.

Answers: 1

Answer

Business, 22.06.2019 14:30

Taking commercial paper means the holder acts honestly

Answers: 1

Answer

Business, 22.06.2019 17:30

One of your new suppliers, kim, has been hearing rumors about your firm’s lack of capability to deliver high quality products and writes an email asking you to address the claims being made. in replying to her, you want to be sure that you are very clear and leave no room for misinterpretation. which of the following aspects of effective communication should you give the most attention? (a) making sure you understand kim’s areas of expertise. (b) supporting your reply with relevant data and facts. (c) establishing your credibility as an expert. (d) paying attention to implied communications.

Answers: 2

Answer

You know the right answer?

If a check written by a firm is not canceled by the bank and returned with the month's bank statemen...

Questions

Business, 04.07.2019 06:10

Suppose company abc has revenues of $200 million, cost of goods sold of $350 million, and depreciation of $50 million. what is the company's ebit? mu...