1. A cheque was written by a business for $245 but recorded in the books as $542. How would this error be included on the bank reconciliation?

1. a deduction on the bank side
2. an addition on the bank side
3. an addition on the book side
4. a deduction on the book side

2. Sales revenue = $2,000, Beginning Inventory = $1,000, Cost of goods purchased = $2,000, Ending Inventory = $1,500. What is the cost of goods sold?

A. 500

B. 1,000

C. 1,500

D. 2,000

3. On Dec 31, 2014, there are goods in transit. Which one allows sellers to recognize revenues in 2014?

A. FOB shipping point

B. FOB destination