Included in the Bank Statement Was a Debit for Bank $\quad$

question 1

Multiple Choice

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

• A) Dr Bank charges\(\quad \)\(\quad \)\(\quad \)Cr Cash
• B) Dr Cash\(\quad \)\(\quad \)\(\quad \)\(\quad \)\(\quad \)\(\quad \)Cr Other revenue
• C) Dr Cash\(\quad \)\(\quad \)\(\quad \)\(\quad \)\(\quad \)\(\quad \)Cr Accounts payable
• D) Dr Accounts payable\(\quad \)\(\quad \)Cr Cash

---

Definitions:

Annual Percentage Rate

The annual percentage rate (APR) is the yearly interest rate charged on borrowed money, including any fees or additional costs, providing a comprehensive cost measure.

Interest Per Month

The amount of interest payable each month on a loan, mortgage, or any other financial obligation that incurs interest.

Rate Of Return

The net gain or loss on an investment over a specified time period, expressed as a percentage of the investment's initial cost.

Compounded Monthly

Interest calculation method where the interest earned is added to the principal each month, resulting in interest on interest.