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If the marginal utility of a gallon of milk to consumers is $2.50 and the MC of producing the gallon of milk is $1.50, then
Book Balance
refers to the current balance in a company’s accounting records, not including any pending transactions that have not yet been cleared or settled.
Net Collection Float
The time difference between when a check is deposited and when the funds are available in the firm's account, affecting available cash.
Net Disbursement Float
The time difference between when a check is issued by a company and when the funds are actually withdrawn from the company's bank account.
Outstanding Checks
Checks that have been written and recorded in the account ledger but not yet cashed or cleared by the bank.
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