A payment made that removes money from a bank account is called what?

A payment made that removes money from a bank account is called what?

• A. Check
• B. Expense
• C. Debit
• D. Credit

Answer: (C)

Debits are money leaving your bank account. When you pay a bill, write a check, or use a debit card, the bank lowers your account balance—that action is called a debit. A check is simply one way to make a payment, but the important idea is that the payment reduces your funds, which is a debit. An expense is the cost you incur, not the act of moving money out of your account, and a credit is money coming into the account or an amount that increases the balance. So the payment that removes money from the account is a debit.

Debits are money leaving your bank account. When you pay a bill, write a check, or use a debit card, the bank lowers your account balance—that action is called a debit. A check is simply one way to make a payment, but the important idea is that the payment reduces your funds, which is a debit. An expense is the cost you incur, not the act of moving money out of your account, and a credit is money coming into the account or an amount that increases the balance. So the payment that removes money from the account is a debit.