Notification by the Bank That a Deposited Customer Check Was

question 4

Multiple Choice

Notification by the bank that a deposited customer check was returned NSF requires that the company make the following adjusting entry:

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

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Definitions:

Capital Gains Yield

The change in price of a security over time, expressed as a percentage.

Geometric Average

A method of calculating the average rate of return that considers the compounding effect of returns over time.

Risk-Free Security

An investment that is assumed to be free from any risk of financial loss, typically represented by government bonds.