Which of the Following Statements Is True Regarding a Credit

question 54

Multiple Choice

Which of the following statements is true regarding a credit memorandum and its relationship to a company's bank reconciliation procedures?

• A) It must be added to the balance per the customer's records.
• B) It is issued to notify a company of bank service charges which need to be recorded on the company's records.
• C) It is issued when a customer gives the company an NSF check which needs to be recorded on the company's records.
• D) It must be recorded as a debit to the balance per the company's records.

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Definitions:

Explicit Conscious

Direct, clear awareness of mental activities, such as thinking, feeling, and decision-making.

Effortless

Achieved with remarkable ease and without apparent difficulty or exertion.

Representativeness Heuristic

A mental shortcut that involves making judgments about the probability of an event under uncertainty, based on how much it resembles the typical case.

Availability Heuristic

A cognitive shortcut that relies on immediate examples that come to a person’s mind when evaluating a topic, concept, method, or decision.