Notification by the Bank That a Customer's Deposited Cheque Was

question 51

Multiple Choice

Notification by the bank that a customer's deposited cheque was returned NSF requires that the depositor make the following adjusting entry:

• A)Accounts Receivable
• B)Cash
• C)Bank Charges Expense
• D)No adjusting entry is necessary.

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Definitions:

Obsolescence

The process of an asset becoming outdated or no longer used, often due to technological advancements.

Annual Rate of Return

The Annual Rate of Return is the percentage of profit or loss on an investment over a one-year period, taking into consideration both capital gains and dividends.

Initial Investment

The amount of money used to start a project, purchase an asset, or invest in a business venture.

Net Annual Cash Inflow

The difference between all cash received and all cash expended by a business in one year.