When the bank pays a cheque written by the company, it would
A) credit the customer's bank account.
B) debit the customer's bank account.
C) debit the cash account on the company's books.
D) No increase or decrease is made to the company's bank account.

Question

Quizplus · Accepted Answer

When a bank pays a cheque written by the company, it debits the customer's bank account, meaning it reduces the balance in the account to reflect the payment made.

When the Bank Pays a Cheque Written by the Company