Indicate Whether Each of the Following Statements Is True or False

question 139

Short Answer

Indicate whether each of the following statements is true or false.
_____ a)Debit memos in a bank statement describe transactions that increase the depositor's assets.
_____ b)Credit memos in a bank statement describe transactions that act to increase the bank's liabilities.
_____ c)Service fees charged by a bank appear on bank statements as credit memos.
_____ d)Deposits in transit appear on the bank statement as credit memos.
_____ e)Outstanding checks do not appear on the bank statement.

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Definitions:

Interest Incurred

The cost of borrowing money, represented as the amount charged by a lender to a borrower for the use of assets, typically expressed as an annual percentage of the principal.

Discounted Note

A promissory note or bond sold at a price lower than its face value, which will pay the face value at maturity.

Adjusting Entry

A journal entry made at the end of an accounting period to allocate income and expenditure to the correct period.

Interest Income

Income earned from investments, savings, or credit extended, such as interest on bonds, savings accounts, or loans provided to others.