Your Company Writes a Check for $857

question 53

Multiple Choice

Your company writes a check for $857. Which of the following describes how this transaction should be accounted for?

• A) You add $857 to your recorded cash balance and the bank deducts $857 from your checking account balance.
• B) You deduct $857 from your recorded cash balance and the bank deducts $857 from your checking account balance.
• C) You add $857 to your recorded cash balance and the bank adds $857 to your checking account balance.
• D) You deduct $857 from your recorded cash balance and the bank adds $857 to your checking account

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Definitions:

Rental Housing

Properties available for rent to provide accommodation, usually on a monthly or yearly lease agreement.

Price-Consumption Curve

A curve in economics that shows the changes in an individual's consumption of two goods as the price of one good changes, holding the individual's utility level constant.

Engel Curve

A graphical representation showing how household spending on a particular good or service changes with income.

Upward-Sloping

A description of a line or curve on a graph that indicates an increase in a variable as another variable increases.