The Hobby Shop Has a Checking Account with a Ledger

question 37

Multiple Choice

The Hobby Shop has a checking account with a ledger balance of $692.The firm has $1,063 in uncollected deposits and $930 in outstanding checks.What is the amount of the disbursement float on this account?

• A)$0
• B)$217
• C)$930
• D)$990
• E)$1,063

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Definitions:

Intrinsic Value Method

A technique used to calculate the actual value of a company or asset based on its fundamental, underlying value.

GAAP

Generally Accepted Accounting Principles, a common set of accounting principles, standards, and procedures that companies in the U.S. use to compile their financial statements.

Legal Capital

The portion of a company's equity that cannot legally be distributed to the shareholders as dividends, typically the par value of issued shares.