A deposit received by the bank will include
A) a debit to the company's bank account.
B) a credit to the company's bank account.
C) no increase or decrease is made to the company's bank account.
D) a credit to the cash account on the company's books.

Question

Quizplus · Accepted Answer

A deposit received by the bank will result in a credit to the company's bank account. This means that the amount of money in the account will increase. The bank will debit its own liability account because it owes the company that amount of money. The deposit will not directly affect the cash account on the company's books because the money has not yet been withdrawn.

A Deposit Received by the Bank Will Include