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Non-sufficient funds.

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13y ago

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What does the Banking Term FED Notice NSF indicate?

I'm uncertain what the initials "FED" might mean, but the initials "NSF" stand for non-sufficient funds.


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NSF could stand for a number of things:National Students FederationNational Socialist FrontNephrogenic systemic fibrosisNational Science FoundationAnd may more.


What does the FED (or Fed) stand for?

I'm uncertain what the initials "FED" might mean, but the initials "NSF" stand for non-sufficient funds.


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What effect will the entry to record the NSF check have on the accounting equation?

The entry to record a non-sufficient funds (NSF) check will decrease assets and decrease equity. Specifically, accounts receivable (an asset) will be reduced to reflect the uncollectible amount, while retained earnings (part of equity) will also decrease due to the loss of revenue. This action maintains the accounting equation, as both sides remain balanced.


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