EFT and Debit transactions are recorded in a similar fashion to which type of transaction?

• A. Credit Memo
• B. Check
• C. Invoice
• D. Payment

Answer: (B)

Recording payments that pull funds from your bank account uses the same form as a check. EFT and debit are both ways money leaves your business to pay an expense or a vendor, so the ledger entry mirrors a check: you select the bank account being paid from, identify the payee, date, and amount, and assign the appropriate expense or payable. This alignment keeps your cash balance and expense or liability accounts in sync with your bank statement, just like issuing a check would. Credit memos relate to credits against receivables, invoices are bills you issue to customers, and a payment entry typically centers on customer receipts or other inbound cash flows, not the outflow from your bank. So the check is the best match for recording EFT and debit transactions.