The Debit Side of an Account

question 4

Multiple Choice

The debit side of an account

• A) depends on whether the account is an asset, liability, or owner's equity
• B) can be either side of the account depending on how the accountant set up the system
• C) is the right side of the account
• D) is the left side of the account

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Definitions:

Note Collected

Refers to the receipt or collection of the amount due from a note receivable.

NSF Check

A check that has been returned by a bank because of insufficient funds in the account to cover the amount written on the check.

Outstanding Checks

Checks that have been issued and recorded by an entity but have not yet been cashed or cleared by the bank.

Petty Cash Fund

A small amount of cash kept on hand for minor or incidental expenses.