The difference between the firm's checking account balance shown on the books of the bank and the account balance shown on its own books is known as _____.

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The difference between the firm's checking account balance shown on the books of the bank and the account balance shown on its own books is known as float. Float is caused by the time it takes for checks to clear between different banks, resulting in a delay in funds being credited or debited from the account.

The Difference Between the Firm's Checking Account Balance Shown on the Books