Julia Opens a Checking Account with Washington Bank and Deposits

question 1

Multiple Choice

Julia opens a checking account with Washington Bank and deposits funds into the account.Julia and Washington Bank

• A)do not have a contractual relationship.
• B)have a creditor-debtor relationship in which Julia is the creditor and Washington Bank is the debtor.
• C)have a creditor-debtor relationship in which Washington Bank is the creditor and Julia bank is the debtor.
• D)do not have a creditor-debtor relationship.

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Definitions:

Incorporated

The process of legally declaring a business entity as a corporation, providing its owners with benefits such as limited liability.

Accounts Receivable

Money owed to a business by its clients or customers for goods or services provided on credit.

Accounts Payable

The amount of money a company owes to its suppliers or vendors for goods and services received but not yet paid for.

Line of Credit

A flexible loan from a bank or financial institution that sets a maximum amount of money the borrower can access and use over a period.