The Difference Between a fiRm's Book Balance and Its Bank

question 367

Multiple Choice

The difference between a firm's book balance and its bank cash is called the firm's _________.

• A) Tax balance.
• B) Market value of cash.
• C) Float.
• D) Ledger balance.
• E) Available balance.

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Definitions:

Book Value

The net value of a company's assets minus its liabilities, often used to assess the company's financial health and as a basis for valuation.

Market Value

The current quoted price at which an asset or service can be bought or sold in a public marketplace.

Early Retirement

The process of leaving one's job and ceasing to work before the traditional retirement age, often with financial support through a pension or savings.

Carrying Value

The net amount at which an asset or liability is valued on the balance sheet, also known as book value, factoring in depreciation, impairments, and amortization.