When a Firm Writes a Check,there Is an Immediate Decrease

question 53

Multiple Choice

When a firm writes a check,there is an immediate decrease in _____ cash,but no immediate change in _____ cash.

• A) bank; collected
• B) ledger; book
• C) bank; ledger
• D) book; bank
• E) None of these.

---

Definitions:

Twelve Months

A term commonly used in finance and business to refer to a full fiscal or calendar year.

Long-Term Debt

Debt obligations due for repayment in more than one year, often used for significant business investments.

Issue Date

The date on which a security (like a bond or stock) is issued or made available for sale.

Discounted Present Value

The current worth of a future sum of money or stream of cash flow given a specified rate of return.