Which Document Issued by a Bank Reflects a Transaction That

question 11

Multiple Choice

Which document issued by a bank reflects a transaction that decreases a company's checking account balance?

• A)A debit entry.
• B)A debit memo.
• C)A credit memo.
• D)A reconciling entry.

Understand the importance and usage of headings in written communication.

Recognize and describe specific language and style appropriate for different types of communication.

Distinguish between the proofreading needs of routine versus complex documents.

Identify the characteristics of social media communication.

---

Definitions:

Terms: 3/20, Net 30

Payment terms indicating a 3% discount if paid within 20 days, otherwise net amount is due within 30 days.

June 1 Dating

A term used in trade credit to indicate that the payment is due on June 1 for purchases made now.

Lockbox System

A service provided by banks to companies for the receipt of payment from customers, involving collecting and processing checks received at a special post office box.

Electronic Transfer

The digital exchange of money between accounts, which can occur within the same financial institution or across different institutions.