Accompanying the Bank Statement Was a Debit Memorandum for an NSF

question 42

Multiple Choice

Accompanying the bank statement was a debit memorandum for an NSF check received from a customer.This item would be included on the bank reconciliation as a(n) :

• A) deduction from the cash balance per books.
• B) addition to the cash balance per bank.
• C) deduction from the cash balance per bank.
• D) addition to the cash balance per books.

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Definitions:

Agency Responsibilities

Duties and powers entrusted to an agent or agency acting on behalf of another person or entity, known as the principal.

Constructive Dismissal

A situation where an employee resigns due to the employer's conduct creating an intolerable work environment, effectively being forced out.

Fiduciary Duty

An obligation to act in the best interest of another party, usually in financial or trust relationships.

Utmost Good Faith

A duty to act in the best interests of another; such duty may arise between directors and officers and the corporation they serve, between business associates including senior employees and their employer, between agents and their principals, and between partners; also called fiduciary duty.