After Preparing a Bank Reconciliation,the Collection of a Note by the Bank

question 50

Multiple Choice

After preparing a bank reconciliation,the collection of a note by the bank on a company's behalf would be recorded with:

• A)A credit to Notes Receivable.
• B)A credit to Cash.
• C)A debit to Notes Receivable.
• D)A credit to Accounts Receivable.

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Definitions:

Bookkeeping

The recording of financial transactions, and is part of the process of accounting in business, which involves maintaining accurate and systematic records of a company's financial transactions.

Checkbook Register

A document, often accompanying a checkbook, that allows individuals to track their deposits, withdrawals, and current balance for their bank account.

Single-entry System

A basic accounting method where entries are recorded only once, either as an expense or income, making it less intricate but less accurate than the double-entry system.

Double-entry Bookkeeping

An accounting system that records each transaction twice, as both a debit in one account and a credit in another, to ensure accuracy.