A Credit Memo Affects the Customer's Balance

question 16

True/False

A credit memo affects the customer's balance.

---

Definitions:

Par-value Share

A type of stock with a nominal face value that companies define in their corporate charter.

Debenture

An acknowledgment of debts by a corporation normally involving more than one creditor; often used interchangeably with “bond,” but whereas a bond is typically secured against a specific asset, a debenture may be unsecured or secured by a floating charge against inventory.

Commonly Used

Refers to something widely adopted or practiced by a large number of people or within numerous contexts.

Bond

A share interest in the indebtedness of a corporation; often used synonymously with “debenture,” though a bond is normally secured against specific assets, while a debenture is likely not.