Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

6. Internal Controls and Reporting Cash

Bank Reconciliation

Financial Accounting

6. Internal Controls and Reporting Cash

Bank Reconciliation

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Multiple Choice

Which of the following would appear as a credit memorandum on the bank statement?

NSF (non-sufficient funds) checks

Interest earned on the account

Bank service charges

Outstanding checks

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Verified step by step guidance

Understand the concept of a credit memorandum: A credit memorandum on a bank statement represents an increase in the bank account balance. It is issued by the bank to notify the account holder of a credit adjustment.

Analyze each option provided in the problem: NSF checks, interest earned, bank service charges, and outstanding checks.

Evaluate NSF checks: NSF checks represent a deduction from the account balance, not an increase. Therefore, they would not appear as a credit memorandum.

Evaluate interest earned: Interest earned on the account increases the account balance and is recorded as a credit memorandum on the bank statement.

Evaluate bank service charges and outstanding checks: Bank service charges are deductions from the account balance, and outstanding checks are checks issued but not yet cleared by the bank. Neither would appear as a credit memorandum.