Accompanying the Bank Statement Was a Debit Memo for an NSF

question 141

Multiple Choice

Accompanying the bank statement was a debit memo for an NSF check received from a customer. What entry is required in the company's accounts?

• A) debit Other Income; credit Cash
• B) debit Cash; credit Other Income
• C) debit Cash; credit Accounts Receivable
• D) debit Accounts Receivable; credit Cash

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Definitions:

Confirmation

The act of verifying or validating a hypothesis, statement, or belief by obtaining evidence that supports it.

Replication Studies

Investigations conducted to confirm the findings of previous research by repeating the same study to verify its results.

Making Measurable

The process of defining or setting metrics to quantify progress, performance, or outcomes.