If a Credit Memo Appears on a Bank Reconciliation, This

question 10

Multiple Choice

If a credit memo appears on a bank reconciliation, this could be an indication that:

• A) there has been a decrease the company's bank account
• B) there has been a bank service charge
• C) there has been a deposit of a customer's NSF check
• D) there has been a note receivable for the company that was collected by the bank.

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Definitions:

Tax Due

The amount of tax owed to a government, typically determined after performing a calculation based on income and allowable deductions.

Social Security

A federal program in the United States that provides retirement benefits, disability income, and survivors benefits to eligible Americans.

Limit

The maximum amount, quantity, or level permitted, often used in financial contexts to describe caps on deductions, contributions, or benefits.

Standard Deduction

A fixed dollar amount that reduces the income on which you are taxed, an alternative to itemizing deductions, varies based on filing status.