A Bank Issues a Debit Memorandum

question 76

Multiple Choice

A bank issues a debit memorandum

• A) To notify a depositor of all increases to the depositor's account
• B) To notify a depositor of a deduction from a depositor's account
• C) To notify a depositor of an NSF cheque
• D) To notify a depositor of an EFT
• E) To notify a depositor of a deduction from a depositor's account and to notify a depositor of an NSF cheque

---

Definitions:

Long-Term Liabilities

Financial obligations of a company that are due beyond one year, such as bonds payable, long-term loans, and lease liabilities.

Known Current Liabilities

Short-term financial obligations that are recognized and recorded, expected to be settled within one year or within the normal operating cycle.

Liabilities

Financial obligations or debts that a company owes to others, which must be settled over time through the transfer of economic benefits including money, goods, or services.

Contingent Liabilities

Contingent liabilities are potential liabilities that may occur depending on the outcome of a future event.