Your Friend,Mike,has Just Started a Business and Comes to You

question 115

Essay

Your friend,Mike,has just started a business and comes to you with a question."I'm confused.I have a memo included with my bank statement indicating a $55 service charge for printing new checks.Since you're an accounting major,maybe you can explain to me why they call it a 'debit memorandum,' even though they are deducting this amount from my account.When I took Accounting in school,I could have sworn that a decrease in the Cash account would be a credit and not a debit."
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Required
In a short paragraph,explain this issue to your friend.

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Definitions:

GDP

Gross Domestic Product, the total monetary value of all final goods and services produced within a country's borders in a specific time period.

American Tourists

Individuals from the United States who travel to different countries or destinations for pleasure, leisure, or cultural experiences.

GNP

Gross National Product, which measures the total economic output produced by a country's residents, both domestically and abroad.

GDP

Gross Domestic Product, which is the total monetary or market value of all the finished goods and services produced within a country's borders in a specific time period.