KL Textiles Writes 22 Checks a Day for an Average

question 77

Multiple Choice

KL Textiles writes 22 checks a day for an average amount of $827 each.These checks generally clear the bank 3.5 days after they are written.In addition, the firm generally receives an average of $23,902 a day in checks.Deposited amounts are available after one day.What is the amount of the firm's disbursement float?

• A)$11,951
• B)$23,902
• C)$39,777
• D)$29,840
• E)$63,679

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Definitions:

Behavioural Decision Model

A theory that explains decision making by individuals based on psychological factors, including biases, perceptions, and other behavioral aspects.

Cognitive Limitations

Refers to the constraints on human information processing, including limited memory and attention capacity.

Perfectly Rational

Refers to a theoretical condition in decision-making where individuals make decisions by fully optimizing and considering all available information and potential outcomes.

Ambiguous Situations

Scenarios that lack clarity and can be interpreted in multiple ways.