[The Following Information Applies to the Questions Displayed Below

question 42

Multiple Choice

[The following information applies to the questions displayed below.]
The bank statement for Tetra Company contained the following items: a bank service charge of $10; a credit memo for interest earned, $15; and a $50 NSF check from a customer. The company had outstanding checks of $100 and a deposit in transit of $300.
-Which of the following will be caused by recording the customer's NSF check?

• A) Accounts receivable increases.
• B) Cash decreases.
• C) stockholders' equity decreases.
• D) Accounts receivable increases and cash decreases.

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Definitions:

Red Blood Cells

Disc-shaped cells essential for transporting oxygen throughout the body using a protein called hemoglobin.

Universal Donor

Refers to a person with O negative blood type, whose blood can be transfused into persons of any other blood type in emergency situations.

Type O

A blood group in the ABO system characterized by the absence of A and B antigens on red cells and the presence of anti-A and anti-B antibodies in the plasma.

Universal Recipient

An individual with Type AB positive blood, who in theory can receive blood of any type in transfusions due to the absence of anti-A or anti-B antibodies.