Which of the following is an example of a debit 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 deposit

Question

Quizplus · Accepted Answer

A notice of a bank service charge is an example of a debit memo as it represents a deduction or reduction in the balance of the account. When the bank charges a fee for their services, they add a debit memo to the account to show that the account has been debited for that amount.

D) A company's transposition error in the recording of a deposit may also be an example of a debit memo as it represents an error in the account balance and requires an adjustment to correct. However, it is not a definite answer as it depends on the situation.

Which of the Following Is an Example of a Debit