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A deposit made by a company will appear on the bank statement as aGroup of answer choicesdebit memorandum.credit.credit memorandum.debit.

Question

A deposit made by a company will appear on the bank statement as a

  • aGroup of answer choices
  • debit memorandum.
  • credit.
  • credit memorandum.
  • debit.
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Solution

To determine how a deposit made by a company will appear on a bank statement, we need to understand how bank transactions are recorded:

  1. Understanding Bank Transactions:

    • When a deposit is made, it increases the bank's liabilities as the bank owes that amount to the depositor.
    • The bank records this transaction as a credit to the depositor's account.
  2. Bank Statement Representation:

    • A bank statement typically reflects deposits as credits, since it represents money that the bank owes to the account holder.
    • A "debit" is usually associated with withdrawals or payments made out of the account.
  3. Memoranda:

    • A "credit memorandum" signifies that a deposit has been added to the account.
    • A "debit memorandum" signifies that a deduction has been made from the account.

Given this information, the correct representation of a deposit on the bank statement would be:

Final Answer

credit

This problem has been solved

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