Which of the Following Statements Relating to Dishonoured Cheques Is

Multiple Choice

Which of the following statements relating to dishonoured cheques is incorrect?

A) They appear as credits on the bank statement.
B) They are cheques from debtors deposited into the firm's bank account but not paid by the drawer's bank due to lack of funds or for other reasons.
C) They are not listed in the bank reconciliation.
D) They are adjusted for by entering a negative amount into the cash receipts journal.