When a Person Deposits a Check into Her Checking Registered

question 18

Multiple Choice

When a person deposits a check into her checking Registered Retirement Savings Plan (RRSP) ,

• A)she owes the bank money.
• B)the bank owes her money.
• C)no one owes anybody anything.The deposit is an asset to both the bank and the person.
• D)no one owes anybody anything.The deposit is an asset to the person,but is neither an asset nor a liability to the bank.

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Definitions:

Transaction Recorded Twice

This refers to a bookkeeping error where a financial transaction is mistakenly entered into an accounting system more than once, potentially distorting financial statements.

Liabilities

Debts or financial responsibilities that a company has towards others, requiring settlement via the transfer of economic resources over a period.

Debits

Entries in accounting that represent an increase in assets or expenses, or a decrease in liabilities, equity, or income.

Credits

Accounting entries that increase liabilities or equity or decrease assets or expenses.