Larry Imports Writes Three Checks a Day for an Average

question 39

Multiple Choice

Larry Imports writes three checks a day for an average amount of $11,500 each.These checks generally clear the bank 2.1 days after they are written.In addition, the firm generally receives and deposits checks amounting to $19,500 each day.All deposits are available the next day.What is the firm's net float?

• A)Net collection float of $19,500
• B)Net collection float of $52,950
• C)Net collection float of $91,950
• D)Net disbursement float of $52,950
• E)Net disbursement float of $91,950

---

Definitions:

GAAP

Generally Accepted Accounting Principles, the standard framework of guidelines for financial accounting used in any given jurisdiction.

Managerial Accounting

The practice of identifying, measuring, analyzing, interpreting, and communicating financial information to managers for the pursuit of an organization's goals.

Primary Goal

The main objective or purpose that an organization, individual, or project aims to achieve.

Managerial Accounting

The practice of analyzing, interpreting, and presenting financial information to management for the purpose of informed decision-making.