The Journal Entry to Record an NSF Check Would Require

question 38

Multiple Choice

The journal entry to record an NSF check would require a

• A)debit to Accounts Receivable and a credit to Cash.
• B)debit to Cash and a credit to Accounts Receivable.
• C)debit to Accounts Payable and a credit to Cash.
• D)debit to Miscellaneous Expense and a credit to Cash.
• E)debit to Cash and a credit to Accounts Payable.

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Definitions:

Laissez-Faire Economy

An economic system in which transactions between private parties are free from government intervention such as regulation, privileges, tariffs, and subsidies.

Purely Capitalist Economy

An economic system characterized by private or corporate ownership of capital goods, investments determined by private decision, and prices, production, and the distribution of goods determined mainly by competition in a free market.

Features of Capitalism

include private property ownership, capital accumulation, wage labor, voluntary exchange, a price system, and competitive markets, driving economic growth and innovation.

Corporate Entities

Organizations or companies recognized by law as a single entity, separate from its owners, with its own rights, responsibilities, and liabilities.