If a Credit Memo Appears on a Bank Reconciliation, This

question 10

Multiple Choice

If a credit memo appears on a bank reconciliation, this could be an indication that:

• A) there has been a decrease the company's bank account
• B) there has been a bank service charge
• C) there has been a deposit of a customer's NSF check
• D) there has been a note receivable for the company that was collected by the bank.

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Definitions:

Homogeneity

The quality or state of being all the same or all of the same kind, often referring to consistency within groups or datasets.

Universality

The ability to be applied or relevant in all cases, or the notion that certain concepts hold true across all cultures and situations.

Schizophrenia

A psychological condition marked by unusual conduct, peculiar speech, and a diminished capacity to grasp reality.

Waxy Flexibility

A state wherein a person’s limbs and posture can be “moulded” into different positions as if the person were made of wax. Occasionally seen in schizophrenia.