Liam uses checks and a debit card, but does not always write all the transactions in his checkbook register. He has lost track of his checkbook balance. Liam looks up the “available balance” using online banking, and writes it on the next line as his new checkbook balance available to spend. What is wrong with Liam’s method?

The bank’s available balance may not include checks Liam has written that have not yet cleared, so it can overstate how much he can safely spend. Using that figure as his register balance also leaves his records unreconciled, and spending the apparent extra money could cause a check to overdraw the account and trigger a non-sufficient funds fee. Therefore, all three problems apply: choice D, “All of the above.”

AI-written and checked against the verified answer.