Check payment for $658 was incorrectly entered in the cash account as $856. Which adjustment needs to be made?
A)decrease the book balance
B)decrease the bank statement balance
C)increase the book balance
D)increase the bank statement balance

Question

Quizplus · Accepted Answer

The book balance was overstated by $198 ($856 - $658), so it needs to be decreased by this amount to correct the error.

Check Payment for $658 Was Incorrectly Entered in the Cash