Question

Which of the following statements regarding a credit memorandum is not true? a.A credit memorandum is...

Which of the following statements regarding a credit memorandum is not true?

a.A credit memorandum is added to the balance per the company's books.

b.A credit memorandum could be issued for interest earned on checking account balances.

c.A credit memorandum is issued when the bank collects a note for the customer.

d.A credit memorandum is subtracted from the balance per the company's books.

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Answer #1

option A - a credit memorandum is added to the balance per the company's books.

It's not true according to credit memorandum, it won't add any balance as per the company's books

Credit memorandum means is issued when interest earned on checking account balance and issued when bank collects note for the customer in bank terms

And in sales terms credit memorandum is issued to customer as company subract the amounts from the balance per company's books in case of sales returns etc.,.

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