Which of the Following Statements Regarding a Credit Memorandum Is

question 123

Multiple Choice

Which of the following statements regarding a credit memorandum is true?

• A)A credit memorandum is subtracted from the balance per the company's books.
• B)A credit memorandum could be issued for bank service charges.
• C)A credit memorandum is issued when a customer gives the company an NSF check.
• D)A credit memorandum is added to the balance per the company's books.

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Definitions:

Ledger

A book or collection of financial accounts where financial transactions are recorded.

Cash Payment

A transaction where a payment is made using physical currency or through electronic funds transfer, directly settling an obligation.

Cash Account

An account that records cash transactions, including cash received and disbursed, maintained by a company to keep track of its liquid assets.

Recorded

This term signifies the process of documenting transactions and events in the accounting records of a business.