Owners Cannot Write Checks on Nontransaction Deposits,but the Interest Rate

question 85

True/False

Owners cannot write checks on nontransaction deposits,but the interest rate paid on these deposits are usually higher than those on checkable deposits.

---

Definitions:

General Journal Entry

A basic accounting record used to log all business transactions and events in the accounting system.

Cash Dividends

Payments made to shareholders out of a company's earnings, representing a share of the profits.

Originally Issued

Refers to securities or financial instruments that have been sold directly by the issuer to investors for the first time, not through secondary market transactions.

Retained Earnings

Retained earnings represent the cumulative amount of net income earned by a company that is kept within the company for reinvestment in its operations or to pay debt, rather than being paid out as dividends to shareholders.