Which of the following describes an activity that reduces a company's bank account balance?
A)A debit entry
B)A debit memo
C)A credit memo
D)A reconciling entry

Question

Quizplus · Accepted Answer

A bank statement debit memo describes a transaction that reduces the customer's account balance (the bank's liability).Because a checking account is an asset (cash)to the depositor,the debit memo requires a credit entry to decrease the Cash account on the depositor's books.

Which of the Following Describes an Activity That Reduces a Company's