Accompanying the Bank Statement Was a Debit Memorandum for Bank

question 37

Multiple Choice

Accompanying the bank statement was a debit memorandum for bank service charges.What adjustment is required in the depositor's accounts?

• A) Increase Miscellaneous Expense; decrease Cash
• B) Increase Cash; increase Other Income
• C) Increase Cash; increase Accounts Payable
• D) Decrease Accounts Payable; decrease Cash

---

Definitions:

Aggregate Supply Curve

A graphical representation showing the total quantity of goods and services that producers are willing and able to supply at different price levels in an economy.

Supply Shocks

Unexpected events that affect aggregate supply, sometimes only temporarily.

Inward

Refers to movements or directions towards the inside or center of something.

Expansionary Gap

A situation where the actual output of an economy exceeds its potential output at full employment, often leading to inflation.