Your fiRm Maintains a Banking Relationship with a Local Bank

question 318

Multiple Choice

Your firm maintains a banking relationship with a local bank. When your firm writes cheques on its account, there is an immediate decrease in the firm's ___________ balance, but no decrease in its
____________ balance until the cheque is presented to a bank for payment.

• A) Collected; ledger.
• B) Book; available.
• C) Available; ledger.
• D) Clearing; ledger.
• E) Book; clearing.

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Definitions:

Marine Layers

Strata of moist ocean air that is cooled below its dew point temperature and thus forms a layer of clouds at the surface or near the surface of a large body of water.

Sand Dunes

Hills or ridges of sand piled up by the wind in desert regions or near bodies of water.

Transgression

A geologic event where the sea advances over land areas, covering them with sediment layers due to rising sea levels.

Mudstone

A rock composed of consolidate mud (silt, clay, or especially a combination of the two).