A Bank Account That Permits Direct Payment to a Third

question 105

Multiple Choice

A bank account that permits direct payment to a third party is a

• A)Savings account.
• B)Transactions account.
• C)Money market mutual fund.
• D)Traveler's check.

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Definitions:

Adjusting Entries

Accounting entries made to adjust the books of accounts to reflect the true financial position and performance of a company at the end of a financial period.

Salaries Expense

The total amount recorded by a company for the salaries of its employees.

Salaries Payable

An account reflecting the debts to workers for performed but unpaid work.

Closing Entry

Journal entries made at the end of an accounting period to transfer the balances of temporary accounts to permanent accounts, ultimately resetting the balances of temporary accounts to zero.