A nonsufficient funds cheque was returned to your company. How does the bank treat this on your bank statement?
A) It is added to the bank balance.
B) It is shown as a debit memo.
C) It is shown as a credit memo.
D) None of these answers are correct.

Question

Quizplus · Accepted Answer

A nonsufficient funds cheque is a payment that cannot be processed due to insufficient funds in the payer's account. Therefore, the bank treats this on the bank statement as a debit memo, which reduces the account balance.

A Nonsufficient Funds Cheque Was Returned to Your Company