Indicate whether each of the following statements is true or false.
a)________ A bank statement debit memo describes a transaction that increases the depositor's assets.b)________ A bank statement credit memo describes a transaction that increases the customer's account balance.c)________ Service fees charged by a bank appear on bank statements as credit memos.d)________ Deposits in transit appear on the bank statement as credit memos.e)________ Outstanding checks do not appear on the bank statement.

Question

Quizplus · Accepted Answer

b)True c)False d)False e)Ta)This is false. Bank statement debit memos describe transactions that reduce the customer's account balance.b)This is true. Bank statement credit memos describe activities that increase the customer's account balance.c)This is false. Because service fees decrease the depositor's assets, they appear as debit memos (rather than credit memos).d)This is false. Deposits in transit do not appear on the bank statement because the bank is unaware of those deposits.e)This is true. Outstanding checks do not appear on the bank statement because the bank is unaware of those checks.

Indicate Whether Each of the Following Statements Is True or False