To Determine the Balance in an Account, Always Subtract Credits

question 148

True/False

To determine the balance in an account, always subtract credits from debits.

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Definitions:

Book Balance

The amount of money on record in a company’s financial accounts, often compared to the available cash balance to identify discrepancies.

Average Daily Float

The average amount of uncollected checks in the process of clearing, representing the gap between bank records and available funds.

Checks

Written, dated, and signed instruments that direct a bank to pay a specific sum of money to the bearer or a named party.

Collection Delay

The time it takes for a business to receive payments owed by its customers after the sale or service has been delivered.