Fly-By-Night Airlines currently has $2.4 million on deposit with its bank.It also has a book balance of $2.4 million.What will be its bank and book balances as soon as it writes a check for $1.1 million to pay its fuel bill?

Question

Quizplus · Accepted Answer

When Fly-By-Night Airlines writes a check for $1.1 million, its book balance immediately decreases by that amount to $1.3 million, but its bank balance remains the same ($2.4 million) until the check is cleared.

Fly-By-Night Airlines Currently Has $2