Which item is considered a debit transaction from a customer's account?

Which item is considered a debit transaction from a customer's account?

• A. Deposit slip
• B. Saving withdrawal
• C. Cash deposit
• D. Credit transfer

Answer: (B)

A savings withdrawal is considered a debit transaction because it involves removing funds from the customer's account. When a customer requests to withdraw money, the bank reduces the balance in the account, which is the defining characteristic of a debit transaction. Essentially, the term "debit" refers to any transaction that decreases the available balance in an account. In contrast, a deposit slip and a cash deposit are associated with adding money to an account, which increases the account balance and is therefore classified as credit transactions. A credit transfer typically involves the transfer of funds from one account to another, which also does not decrease the balance of the originating account. Therefore, the only option that reflects a decrease in the account balance is the savings withdrawal, solidifying its classification as a debit transaction.

A savings withdrawal is considered a debit transaction because it involves removing funds from the customer's account. When a customer requests to withdraw money, the bank reduces the balance in the account, which is the defining characteristic of a debit transaction. Essentially, the term "debit" refers to any transaction that decreases the available balance in an account.

In contrast, a deposit slip and a cash deposit are associated with adding money to an account, which increases the account balance and is therefore classified as credit transactions. A credit transfer typically involves the transfer of funds from one account to another, which also does not decrease the balance of the originating account. Therefore, the only option that reflects a decrease in the account balance is the savings withdrawal, solidifying its classification as a debit transaction.