Accompanying the Bank Statement Was a Credit Memorandum for a Short-Term

question 98

Multiple Choice

Accompanying the bank statement was a credit memorandum for a short-term note collected by the bank for the customer.What adjustment is required in the depositor's accounts?

• A)Increase Notes Receivable; decrease Cash
• B)Increase Cash; increase Miscellaneous Income
• C)Increase Cash; decrease Notes Receivable
• D)Increase Accounts Receivable; decrease Cash

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Definitions:

Exact Tender

The requirement for a payment in the precise amount owed, without needing change.

Customary

Practices or actions that are accepted and expected within a particular community or society, based on traditions or long-standing use.

Frustrated

In legal terms, it refers to a contract or agreement that has become impossible to execute as initially intended due to unforeseen circumstances.

Antique Japanese Sword

A traditional and historical Japanese sword, such as a katana, that is of significant age, valued for its craftsmanship and historical importance.