All of the Following Would Require a Debit Memorandum Except

question 120

Multiple Choice

All of the following would require a debit memorandum except

• A) a bank service charge.
• B) an NSF check.
• C) the cost of printing checks.
• D) interest earned.

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Definitions:

Journal Entry

A single record that reflects the debit and credit effects of a financial transaction in the accounting system.

Coupon Rate

The yearly interest yield on a bond, shown as a percent of the bond's nominal value.

Effective-Interest Method

An accounting method to amortize the discount or premium on bonds payable or receivable over the bond's life, reflecting a constant rate of interest.

Market Rate

The current price or interest rate at which a good, service, or financial asset can be bought or sold in a competitive market.