Bank balance is $18,700. Deposits in transit are $5,200 and outstanding checks are $3,450. What is the reconciled cash balance?
Correct Answer
D) $20,450.
Reconciled cash is bank balance plus deposits in transit minus outstanding checks: $18,700 + $5,200 - $3,450 = $20,450.
Why This Is the Correct Answer
Reconciled cash is bank balance plus deposits in transit minus outstanding checks: $18,700 + $5,200 - $3,450 = $20,450.
Why the Other Options Are Wrong
Option A: $16,950.
$16,950. is below the supported result for bank reconciliation; it likely uses the wrong base, period, or account bucket.
Option B: $18,700.
$18,700. is below the supported result for bank reconciliation; it likely uses the wrong base, period, or account bucket.
Option C: $23,900.
$23,900. is above the supported result for bank reconciliation; it likely adds an unsupported amount or compares the wrong financial base.
Memory Technique
Preparing Contractor'S money test: bucket before math for bank reconciliation.
Reference Hint
Study anchor (closed-book): memorize Bank reconciliation from CSLB Law and Business Study Guide; CSLB 2026 Law Book / CSLB Law and Business Study Guide Business Finances; know the rule or calculation trigger without relying on exam-room lookup.
More Law & Business Questions
A Fresno homeowner wants a $725 cabinet repair and trim adjustment. Which contract step best matches CA home improvement requirements?
A project has $6,500 retainage withheld. The owner releases 60 percent of retainage at substantial completion. How much cash is released?
Cash is $52,500 and monthly burn is $17,500. How many months of runway are available?
A supplier offers 1.5 percent early-pay discount on a $22,000 invoice. What is the discount?
A balance sheet lists assets of $310,000 and liabilities of $185,000. What is owner's equity?
A job is estimated to cost $135,000. What price gives a 25 percent gross margin?
A customer invoice of $4,000 has a stated late charge of 1.5 percent. What late charge is added?
A bid has direct labor of $18,000, materials of $12,500, and equipment rental of $3,500. If the contractor adds 20 percent markup on direct cost, what is the bid price?
A contractor wants a 25 percent gross margin on a job with estimated cost of $60,000. What selling price gives that margin?
A completed project sold for $150,000 and had total cost of $126,000. What gross margin percentage did the project earn?