A Credit Memorandum on a Bank Statement Indicates

question 209

Multiple Choice

A credit memorandum on a bank statement indicates:

• A)An increase in the bank's asset account.
• B)A decrease in the bank's asset account.
• C)A decrease in the bank's liability account.
• D)An increase in the bank's liability account.
• E)An increase in the bank's expense account.

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Definitions:

External Financing

It refers to the funds a business obtains from outside sources, such as bank loans, venture capital, or issuing bonds or equity, to finance its operations or expansion.

Sales Increase

The situation where a company experiences growth in its revenue from the sale of goods or services over a specific period.

Percentage Of Sales

A financial ratio that compares a particular figure or metric to the total sales of a company.

Capital Intensity Ratio

A measure of how much capital is used in the production process, calculated as the ratio of total assets to sales.