With a Debit Card

question 121

Multiple Choice

With a debit card,

• A)you can charge payments in excess of your line of credit.
• B)your purchases are not limited by the amount in your bank deposit.
• C)your purchases are immediately deducted from your bank deposit.
• D)your purchases are deducted from your bank deposit after a grace period.

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Definitions:

T-Accounts

T-Accounts are a form of accounting ledger that visually represents the debits and credits of financial transactions for each account in double-entry bookkeeping.

Capital Drawing

Withdrawals made by the owner(s) from the business for personal use, reducing the total capital invested in the business.

Journalize

The process of recording business transactions in the journal as part of the accounting cycle.

Transactions

Financial events that result in changes to the financial position of a company, such as sales, purchases, and payments.