The Bank Will Show a Customer's Deposit on Bank Statements

question 50

Multiple Choice

The bank will show a customer's deposit on bank statements as a:

• A) debit, because cash is an asset
• B) credit, because a deposit is a liability from the bank's point of view
• C) debit, because a deposit is a liability from the bank's point of view
• D) credit, because cash is an asset

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Definitions:

Petty Cash

A small amount of cash kept on hand for making immediate payments for miscellaneous small expenses.

Disbursements

Cash payments made by a business, including those for expenses, loan payments, or distributions to investors.

Employees As Wages

Compensation in the form of money paid to employees for their labor or services.

Independent Internal Verification

An audit process carried out by employees within the company who are not directly involved in the operations being examined, to ensure accuracy and compliance.