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What would cause a bank to increase a depositor's account balance?

  1. A A cheque returned for insufficient funds
  2. B Collection of a note receivable on the depositor's behalf
  3. C Monthly service charges
  4. D A cheque presented for payment
Answer

Collection of a note receivable on the depositor's behalf

When the bank collects a note on the customer's behalf it credits the account. NSF cheques and service charges both reduce the balance.

All Accounting MCQs

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