College Accounting (Book Only): A ...

13th Edition
Scott + 1 other
ISBN: 9781337280570



College Accounting (Book Only): A ...

13th Edition
Scott + 1 other
ISBN: 9781337280570
Textbook Problem

Which of the following does not affect the bank statement?

  1. a. Credit memo
  2. b. Debit memo
  3. c. Overdraft
  4. d. Electronic transactions
  5. e. Endorsements

To determine

Find the correct option, the option that does not affect the bank statement.


Bank statement: This is a periodic or monthly statement issued by bank reporting the account summary of transactions done by the account holder.

Justification for correct answer: The checks endorsed as ‘For Deposit Only’ allows the bank to transfer the title to the money and accepts the deposit from the business. So, endorsement does not affect bank statement. Hence, option (e) is correct.

Justification for incorrect answers:

  • Option (a) is incorrect because credit memo is an item enclosed on the bank statement indicating an increase in the balance of checking account, and thus, affects bank statement...

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