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Question 1 : Kathryn's account is not in overdraft. When preparing the bank reconciliation she found that the bank had incorrectly debited her account with $120. The proper procedure is to: O deduct $120 from the bank balance in the general ledger. O do nothing the bank will adjust the error when they balance. deduct $120 from the bank balance in the general ledger and notify the bank. O add $120 to the bank statement balance in the bank reconciliation and notify the bank.
Financial Statement Analysis and Preparation
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Computation of Free Cash Flow
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