From the bank reconciliation, no entry was recorded for a debit memo for a new check fee expense. This would cause:
A) Cash to be understated.
B) liabilities to be overstated.
C) expenses to be understated.
D) expenses to be overstated.

Question

Quizplus · Accepted Answer

A debit memo for a new check fee expense that was not recorded would mean the expense has not been accounted for, leading to expenses being understated.

From the Bank Reconciliation, No Entry Was Recorded for a Debit