Which of the Following Would Be Included in the Journal

question 258

Multiple Choice

Which of the following would be included in the journal to record an NSF check?

• A) a debit to Accounts Payable and a credit to Cash
• B) a debit to Accounts Receivable and a credit to Cash
• C) a debit to Cash and a credit to Accounts Receivable
• D) a debit to Bank Expense and a credit to Cash

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Definitions:

Cash Flow

Cash Flow refers to the net amount of cash being transferred into and out of a business, indicating the company's liquidity over a certain period.

Precautionary Need

The motive to hold cash or assets to safeguard against unexpected emergencies or transactions.

Speculative Need

A financial concept where individuals or businesses hold cash or assets in speculation of market changes, expecting to profit from fluctuations in prices or exchange rates.

Transactions Need

encapsulates the necessity for exchanges or trades to occur within an economy or market for goods, services, financial assets, or currencies.