The Process of Posting Is Associated Most Closely with the

question 151

Multiple Choice

The process of posting is associated most closely with the

• A) source documents.
• B) ledger.
• C) financial statements.
• D) trial balance.

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Definitions:

Net Float

The difference between checks written against and deposited in an account, reflecting the time lag between writing a check and clearing it.

Available Balance

The amount of funds in an account that are accessible for withdrawal or use, considering any pending transactions.

Book Balance

The amount of money on record in a company’s financial accounts, often compared to the available cash balance to identify discrepancies.

Average Daily Float

The average amount of uncollected checks in the process of clearing, representing the gap between bank records and available funds.