PRC-1 · Chapter 9 · Question 70 of 100
A standing order payment for insurance was executed by the bank but not recorded in the cash book. How should this be addressed?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) Credit the cash book
Explanation
A standing order is a valid automated payment that was omitted from the cash book. It must be updated in the business's records by crediting the cash book.
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