A Firm Has $18,020 in Outstanding Cheques That Have Not

question 326

Multiple Choice

A firm has $18,020 in outstanding cheques that have not cleared the bank. The firm also has $23,500 in deposits that have been recorded by the firm but not by the bank. The current available balance is $2,640. What is the status of the net float?

• A) Net collection float of $2,840.
• B) Net collection float of $5,480.
• C) Net collection float of $8,120.
• D) Net disbursement float of $2,840.
• E) Net disbursement float of $5,480.

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Definitions:

Marginal Cost

The augmentation in complete expenditure resulting from the manufacture of one more unit of a good or service.

Economies Of Scale

The cost advantages that enterprises obtain due to scale of operation, with cost per unit of output generally decreasing with increasing scale.

Law Of Diminishing Returns

An economic principle stating that adding more of one factor of production, while holding others constant, will at a certain point yield lower incremental per-unit returns.

Economies Of Scale

The financial benefits that businesses achieve because of their size of operation, generally seeing a reduction in cost per unit of output as the scale expands.