Disbursements Float

question 90

Multiple Choice

Disbursements float:

• A)occurs when a deposit is recorded but the funds are unavailable.
• B)causes the book balance to exceed the bank balance.
• C)has tended to increase since the enactment of the Check Clearing Act for the 21^st Century.
• D)is a recommended source of funds for short-term investments.
• E)is eliminated when payments are made electronically.

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Definitions:

Adjusted Trial Balance

A financial statement listing all the accounts and their final balances after all adjustments have been made.

Closing Entries

At the end of an accounting cycle, transactions are recorded to shift balances from provisional accounts to lasting accounts.

Post-closing Trial Balance

A summary of all account balances after closing entries are made, used to check the balance of debits and credits.

Adjusted Trial Balance

A list of all accounts and their balances after adjusting entries are made, used in the preparation of financial statements.