Which of the following is an example of a credit memo?
A)notice of a bank service charge
B)notice of interest earned on a checking account
C)outstanding checks
D)a company's transposition error in the recording of a customer's check

Question

Quizplus · Accepted Answer

A credit memo is a document issued by a bank to a depositor to indicate the depositor's account has been credited for a certain reason. Notice of interest earned on a checking account is an example of a credit memo because it indicates the bank has credited the account for the interest earned.

Which of the Following Is an Example of a Credit