Question

A $25 credit and a $25 charge appear similar, yet they are very different.

Describe what is similar about the two transactions.
How do the two transactions differ?

Answer 1

Similarities:

• Both transactions have a magnitude of $25.
• Both transactions result in a change of $25 in the account.
• The absolute value is the same ($25).

Differences:

• The two transactions yield opposite results.

Explanation:

A $25 credit results in a positive action in the account while the $25 charge is a negative action on the account.