Accompanying the Bank Statement Was a Debit Memo for Bank

question 200

Multiple Choice

Accompanying the bank statement was a debit memo for bank service charges. What entry is required in the company's accounts?

• A) debit Miscellaneous Expense; credit Cash
• B) debit Cash; credit Other Income
• C) debit Cash; credit Accounts Payable
• D) debit Accounts Payable; credit Cash

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Definitions:

Existing Skills

The set of abilities, knowledge, and experience that an individual currently possesses.

Taxpayer

An individual or entity that is obligated to make payments to municipal or government bodies, often in the form of taxes.

Education Expenses

Costs related to education, including tuition, books, and supplies, which may qualify for deductions or credits under tax laws.

Cost Recovery Deduction

Cost Recovery Deduction is a tax deduction that allows individuals or businesses to recover the cost of an investment or asset over time, through depreciation or amortization.