Which of the following statements is false regarding a credit memorandum? A) A credit memorandum is added to the balance per the company's books B) A credit memorandum could be issued for interest earned on checking balances C) A credit memorandum is issued when the bank collects a note for the customer. D) A credit memorandum is subtracted from the balance per the company's books.

Question

Quizplus · Accepted Answer

A credit memorandum is always added to the balance per the company's books, never subtracted. Therefore, statement D is false. A credit memorandum could be issued for various reasons, such as interest earned on checking balances or when the bank collects a note for the customer.

Which of the Following Statements Is false regarding a Credit