Which of the following statements regarding a credit memorandum is not true?
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 account 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

Option D is not true. A credit memorandum is added to the balance per the company's books, not subtracted from it. A credit memorandum is a document that shows a credit has been added to the company's account. It could be issued for various reasons, including interest earned on checking account balances, refunds, or when the bank collects a note for the customer.

Which of the Following Statements Regarding a Credit Memorandum Is