The bank's ledger balance for a firm is equal to the:
A) firm's ledger balance less payment float.
B) available balance plus net float.
C) firm's ledger balance less availability float.
D) available balance plus payment float.

Question

Quizplus · Accepted Answer

The bank's ledger balance for a firm is equal to the available balance plus net float. The available balance is the balance that is actually available for the firm to use, and net float is the difference between the total float (the sum of availability and payment float) and any outstanding checks or deposits. Therefore, B is the correct answer.

The Bank's Ledger Balance for a Firm Is Equal to The