ABC Corpshows a Ledger Balance of $50,000 Prior to Writing a a Cheque

question 39

Multiple Choice

ABC Corp.shows a ledger balance of $50,000 prior to writing a cheque for $5,000 and depositing $1,000 in cheques.What is the amount of their net float?

• A)$1,000
• B)$4,000
• C)$5,000
• D)$6,000

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Definitions:

Healthy Profitability

Healthy profitability indicates a robust and sustainable level of earnings for a business, suggesting it is well-positioned for growth and stability.

Mezzanine Capital

is a form of financing that is a mix between equity and debt, often taking the form of convertible debt or subordinate debt, used by companies for expansion.

Bridge Capital

Temporary financing used to "bridge" the gap until longer-term funding can be arranged or until an anticipated event occurs, like a business sale.

Development Stage

A phase in a company's lifecycle focusing on developing its products, services, or business model, often requiring significant investment and carrying high risk.