Which of the Following Events Would Cause a Bank to Debit

question 112

Multiple Choice

Which of the following events would cause a bank to debit a depositor's account?

• A)The depositor orders new checks through the bank at a cost of $50.
• B)The bank collects a note receivable and related interest on the depositor's behalf.
• C)There are outstanding checks drawn on the account at month-end.
• D)There are deposits in transit on the account at month-end.
• E)The bank corrects an error from previous month by adding $75 to the depositor account.

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Definitions:

Net Income

The total profit of a company after all expenses, including taxes and operating costs, have been deducted from total revenue.

Service Revenue

Income earned by a company for the services it has provided to its customers.

Common Stock

Represents ownership shares in a corporation, giving holders a claim on part of the company's profits and assets.

Unearned Revenue

Revenue received by a company for goods or services that are yet to be delivered or performed.