All Checking Accounts Are Transactions Accounts

question 20

True/False

All checking accounts are transactions accounts.
Any checking account allows the holder to pay sellers directly for goods.So it is considered a transactions account.

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Definitions:

Normal Balances

Refers to the side of an account (debit or credit) where increases in the account are recorded.

Accounts

Financial records that track the transactions and balances for specific items such as assets, liabilities, equity, revenue, and expenses.

Debit

An accounting entry that results in either an increase in assets or a decrease in liabilities or equity on a company's balance sheet.

Credit

An accounting entry that increases a liability or equity account, or decreases an asset or expense account. It is also used in banking to denote the addition of funds to an account.