PRC-1 · Chapter 9 · Question 26 of 100
If bank charges were mistakenly recorded twice in the cash book, the unadjusted cash book balance would be:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Understated.
Explanation
Bank charges are deductions. Recording them twice deducts too much money, leaving the cash book balance artificially low (understated).
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