On Any Given Day, a Firm Receives and Deposits Numerous

question 27

Multiple Choice

On any given day, a firm receives and deposits numerous checks worth an average combined total of $9,215.The funds from the deposited checks are generally available after two days.Every day, the firm mails out checks totaling $7,300 that generally take three days to clear the bank.What is the amount of the collection float if the opening bank balance was $9,200?

• A)$14,230
• B)$15,970
• C)$18,430
• D)$7,300
• E)$11,130

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Definitions:

Tax Rate

The magnitude of tax imposition by the government on the revenue streams of individuals or enterprises.

Bond Rating

An assessment of credit quality provided by rating agencies, indicating the default risk of a bond issuer.

Pure Play Approach

An investment strategy that focuses on companies specializing in a single line of business or product, enhancing portfolio focus but potentially increasing risk.

Cost Of Capital

The minimum rate of return a company must earn on its investments to maintain its market value and attract funds.