Which of the Following Is Not Included in Transactions Accounts

question 117

Multiple Choice

Which of the following is not included in transactions accounts?

• A)A checking account at a commercial bank.
• B)A money market mutual fund.
• C)A credit union share draft.
• D)A demand deposit account at a mutual savings bank.

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Definitions:

Nontrade Receivables

Amounts owed to a business that are not related to the sale of goods or services, such as tax refunds, advances to employees, or insurance claims.

Company Officers

Executives appointed by the board of directors responsible for managing the day-to-day operations and making major corporate decisions.

Direct Write-Off Method

The method of accounting for uncollectible receivables that recognizes an expense only when an account is determined to be worthless.

Allowance Method

The method of accounting for uncollectible receivables that recognizes an expense by estimating future uncollectible accounts at the end of the accounting period.