Question

A bank service charge appears on the bank statement as a

a. debit memorandum that increases the account balance.
b. credit memorandum that decreases the account balance.
c. credit memorandum that increases the account balance.
d. debit memorandum that decreases the account balance.

Answer 1

A bank service charge appears on a bank statement as a d. debit memorandum that decreases the account balance.

Step-by-step explanation:

When a bank service charge appears on a bank statement, it represents money that the bank has taken out of an account for the services it provides.

This type of transaction is known as a debit memorandum and it decreases the account balance because it is an amount that the bank has charged and thus removed from the account.

Therefore, the correct answer to what a bank service charge appears as on a bank statement is a d. debit memorandum that decreases the account balance.