Gentech Corp ? Gentech's Adjusted Cash Balance at June 30, 2016 Is

question 70

Multiple Choice

Gentech Corp.prepared a bank reconciliation as of June 30, 2016.The following items were identified: $$\begin{array} { l r } \text { Gentech's bank balance } & \$ 14,300 \\\text { Deposits in transit } & \$ 1,000 \\\text { Outstanding checks } & 1,300 \\\text { Bank service charges } & 50 \\\text { Customer's NSF check returned by the bank } & 150\end{array}$$ ? Gentech's adjusted cash balance at June 30, 2016 is

• A) $13,800
• B) $14,100
• C) $14,000
• D) $14,300

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Definitions:

Beta

A measurement of the volatility of a stock or a portfolio in comparison to the market as a whole.

Discount Rate

The rate employed in discounted cash flow assessments to establish the current valuation of anticipated future cash flows.

Certainty Equivalent Approach

A method used in capital budgeting and investment theory that adjusts future cash flows to account for risk, making them equivalent in value to certain cash flows.

Risky Years

A term not widely recognized in finance; possibly refers to periods of high financial uncertainty or volatility.