The difference between the amount of cash on the firm's books and the amount credited to it by the bank is

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The difference between the amount of cash on the firm's books and the amount credited to it by the bank is referred to as "float." Float can be positive or negative, and it results from the timing difference between when a check is written and when it is presented for payment. As a result, the firm may temporarily have more cash than it shows on its books.

The Difference Between the Amount of Cash on the Firm's