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The following items may appear on a bank statement: 1. Bank correction of an error from posting another customer's check (disbursement) to the company's account 2. EFT deposit 3. Loan proceeds 4. NSF check Indicate whether each item would appear as a debit or credit memo on the bank statement and whether the item would increase or decrease the balance of the company's account:

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Answer:

Item No. Appears on the bank

Bank statement as

Credit or debit

Memo

1. Credit memo

2. Credit memo

3. Credit memo

4. Debit memo

Increases or

Decreases the

Balance of the

Company's Bank

Account

1, Increases

2. Increases

3. Increases

4. Decreases

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