A credit memorandum on a bank statement indicates:
A) A decrease in the bank's asset account.
B) A decrease in the bank's liability account.
C) An increase in the bank's asset account.
D) An increase in the bank's liability account.
E) An increase in the bank's expense account.

Question

Quizplus · Accepted Answer

A credit memorandum indicates that the bank has credited the customer's account, which means the bank's liability (the amount it owes to the customer) has increased.

A Credit Memorandum on a Bank Statement Indicates