BJ's Just Reconciled Its Bank Account and Has $10,800 in Outstanding

question 94

Multiple Choice

BJ's just reconciled its bank account and has $10,800 in outstanding deposits, $26,300 in checks outstanding, and a positive checkbook balance.The firm sells on a cash-only basis and deposits its receipts at the bank daily.The deposited funds are available to the firm the following day.The firm writes and mails checks on a daily basis also.These checks generally clear the bank in three days.What do you know about the firm's float given this information?

• A)The firm has disbursements float but no collection float.
• B)The collection float generally exceeds the disbursement float.
• C)The firm has a net collection float.
• D)The disbursement float generally exceeds the collection float.
• E)Since transactions occur daily, the firm has no float.

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Definitions:

Mills Company

A general term for businesses involved in the manufacturing sector, particularly those related to textiles, grains, or paper production.

Parallelism

A writing or speaking technique where parts of a sentence have the same or similar grammatical structure.

Production Facilities

Industrial sites or buildings where goods are manufactured or assembled.

Consumer Demands

The needs or desires of consumers for products or services that drive the market demand.