A Credit Memo Appeared on the September Bank Statement

question 204

Multiple Choice

A credit memo appeared on the September bank statement. How should this amount be treated on the September bank reconciliation?

• A)Add it to the company's balance.
• B)Add it to the bank balance.
• C)Deduct it from the company's balance.
• D)Deduct it from the bank balance.

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Definitions:

Statement of Cash Flows

A financial report that provides aggregate data regarding all cash inflows a company receives from its ongoing operations and external investment sources, as well as all cash outflows over a given period.

Financing Section

This term refers to the part of a financial report or business plan that outlines how a company funds its operations, including debt, equity, and other financing sources.

Treasury Stock

Shares that were once a part of the outstanding shares and have been bought back by the company.

Statement of Cash Flows

A report detailing how variations in balance sheet accounts and income levels influence cash and cash equivalents.