The question lacks completeness:
Categorize each occurrence as either a deposit or a debit for a checking account. Place each scenario in its appropriate category.
-depositing a $100 gift check
-settling a utility bill via online payment
-getting an eft of earned wages
-issuing a check for groceries
-withdrawing $40 from an atm
Response:
-depositing a $100 gift check: deposit
-settling a utility bill via online payment: debit
-getting an eft of earned wages: deposit
-issuing a check for groceries: debit
-withdrawing $40 from an atm: debit
Rationale:
A checking account allows for both deposits and withdrawals. A deposit occurs when money is added to the bank account, whereas a debit signifies when funds are removed. Following this guideline, the classifications are as follows:
-depositing a $100 gift check: deposit because it increases the account balance
-settling a utility bill via online payment: debit as it reduces the account funds.
-getting an eft of earned wages: deposit due to the boost in balance.
-issuing a check for groceries: debit since it diminishes the account total.
-withdrawing $40 from an atm: debit because it lowers the account total.
