The Documentation with the Bank Statement Shows a Debit Memo

question 70

Multiple Choice

The documentation with the bank statement shows a debit memo for bank service charges. Identify the effects of the transaction on the company's accounts.

• A) Increase Miscellaneous Administrative Expense; Decrease Cash
• B) Increase Cash; increase Other Income
• C) Increase Cash; increase Accounts Payable
• D) Decrease Accounts Payable; Decrease Cash

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Definitions:

Dacryocystitis

An infection of the tear sac (dacryocyst) at the corner of the eye, leading to inflammation and often blockage of the tear duct.

Lacrimal Passage

A drainage system for tears from the eye into the nasal cavity, which includes the lacrimal ducts and sac.

Glaucoma

A group of eye conditions that damage the optic nerve, often resulting in vision loss and blindness.

Proptosis

The protrusion or forward displacement of the eye from its orbit, which can result from trauma, tumors, or thyroid eye disease.