Which of the following statements is CORRECT? a. Commercial paper can be issued by virtually any firm so long as it is willing t

o pay the going interest rate. b. Short-term debt is favored by firms because, while it is generally more expensive than long-term debt, it exposes the borrowing firm to less risk than long-term debt. c. Commercial paper is a form of short-term financing that is primarily used by large, strong, financially stable companies. d. Trade credit is provided only to relatively large, strong firms. e. Commercial paper is typically offered at a long-term maturity of at least five years.

Business

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The bank statement ending balance is $45 lower than the general ledger bank balance. On the bank statement, there is a line item

Katen [3525]

Answer:

A general ledger adjustment should reflect: 1. Debit Bank Fee Expense $45 and Credit Bank Account $45.

Explanation:

The discrepancies between the Cash Book Bank Balance and the Bank Statement Balance often arise due to Unrecorded Items.

The bank's charge of $45 appears in the Bank Statement but was not documented in the Cash Book.

Thus, the appropriate adjustment is to reduce the Cash Book - Bank Balance and acknowledge this expense in the Income statement pertaining to these Bank Charges.

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