Your Chequebook Shows You Have a $10,000 Balance in Your

question 183

Multiple Choice

Your chequebook shows you have a $10,000 balance in your account. You write cheques totaling $4,000 and make a deposit of $6,000. What is your collection float?

• A) -$2,000
• B) -$4,000
• C) -$6,000
• D) -$7,000
• E) -$8,000

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Definitions:

Use of Cash

Refers to how a business or individual employs their cash resources, including spending, investing, or saving activities.

Inventory Holdings

The quantity of goods or materials in stock by a business awaiting sale or use.

Payables Manager

A financial professional responsible for managing a company's short-term liabilities and obligations to its creditors and suppliers.

Marketable Securities

Financial instruments that are easily convertible into cash within a short period, typically with high liquidity and low risk.