A Firm Has $33,080 in Outstanding Checks That Have Not

question 172

Multiple Choice

A firm has $33,080 in outstanding checks that have not cleared the bank. The firm also has $26,000 in deposits that have been recorded by the firm but not by the bank. The current available balance is $19,290. What is the status of the net float?

• A) Net collection float of $6,710.
• B) Net collection float of $7,080.
• C) Net collection float of $13,790.
• D) Net disbursement float of $6,710.
• E) Net disbursement float of $7,080.

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Definitions:

Indirect Labour Costs

Costs related to employees that cannot be directly traced back to a specific product or service, such as supervisory salaries and maintenance labor.

Timesheet

A document or software where employees' working hours are recorded.

Work in Process Inventory

Partially finished goods that are in the process of being produced but are not yet complete.

General Ledger

The master set of accounts that summarize all transactions occurring within an entity, used to prepare financial statements.