If a Bank Reconciliation Included a Credit Memo for a $2,000

question 32

Multiple Choice

If a bank reconciliation included a credit memo for a $2,000 note collected with an additional $20 of interest revenue, the entry to record this reconciling item would include a:

• A)credit to note receivable for $2,020.
• B)credit to cash for $2,020.
• C)debit to cash for $2,020.
• D)No entry is required.

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Definitions:

Prosecutions

The legal process of charging someone with a crime and conducting a trial to determine their guilt or innocence.

Convictions

The act of declaring someone legally guilty of a crime following a trial.

Corporations

Legal entities that can enter into contracts and own property. They are taxed at a lower rate than individuals and their owners are normally not liable for the corporation’s debt or any harm it may cause the public.

Consensus Crimes

Crimes that are universally condemned by society, such as murder or theft, and seen as inherently wrong.