Asked by Caitlin Minton on May 14, 2024
Verified
An error, on the company's books, in recording a $52 deposit as $25 would be included on the bank reconciliation as a(n) :
A) addition to the balance per bank.
B) subtraction from the balance per bank.
C) addition to the balance per books.
D) subtraction from the balance per books.
Recording Error
A mistake made during the process of entering financial transactions into the accounting records.
- Assess the consequences of varied transactions on the balances of the bank and books.
Verified Answer
MA
Muhammad AsgharMay 14, 2024
Final Answer :
C
Explanation :
This error affects the company's books, not the bank's records. Since the deposit was recorded as less than the actual amount, correcting the error involves adding the difference to the balance per books to match the actual deposit amount.
Learning Objectives
- Assess the consequences of varied transactions on the balances of the bank and books.
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