Multiple Choice
Ron borrows \$10,000 from a bank and agrees to repay the loan in full, including interest, with a single payment at the end of one year. How many payments should Ron make on the repayment date?
2. Transaction Analysis
Journal Entries: Debits and Credits
Multiple Choice
17. Which of the following transactions will reduce your checking account balance immediately?
A
Writing a check to pay a supplier
B
Transferring funds from savings to checking
C
Receiving a bank loan
D
Depositing a customer's check
Verified step by step guidance1
Step 1: Understand the nature of each transaction listed in the problem and how it impacts the checking account balance.
Step 2: Analyze the transaction 'Writing a check to pay a supplier'. When you write a check, the amount is deducted from your checking account balance immediately, as it represents a payment obligation.
Step 3: Evaluate the transaction 'Transferring funds from savings to checking'. This action increases the checking account balance, not reduces it, as funds are moved into the checking account.
Step 4: Consider the transaction 'Receiving a bank loan'. When a bank loan is received, the funds are deposited into your account, increasing the balance rather than reducing it.
Step 5: Examine the transaction 'Depositing a customer's check'. When a customer's check is deposited, it increases the checking account balance, as it represents incoming funds.
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