A nonsufficient funds check 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) It is shown as an increase to the bank's cash balance.

Question

Quizplus · Accepted Answer

A nonsufficient funds (NSF) check is treated as a debit memo on a bank statement because the bank is reducing the account holder's balance due to the returned check.

A Nonsufficient Funds Check Was Returned to Your Company