Sometimes multiple solutions can solve the same problem

Known liabilities of estimated amounts are

A. ignored. (Record them when paid.) B. reported on the balance sheet. C. reported on the income statement. D. reported only in the notes to the financial statements.

You write a check today to your supplier knowing that you do not have enough money to cover it until you make the deposit tomorrow. You know that the supplier's bank will take two days to send the check to your bank. You are using _____________________.

a. Float b. Overdraft c. Cash budget d. Clear