When You Reconciled Your Chequebook, You Had an Adjusted Bank

question 221

Multiple Choice

When you reconciled your chequebook, you had an adjusted bank balance of $2,650. You had 6 cheques outstanding with a total value of $4,100 and 2 outstanding deposits worth $1,200 each.
What is the amount of your collection float?

• A) $1,200
• B) $2,400
• C) $6,500
• D) $24,600
• E) $27,000

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Definitions:

Service Departments

Divisions within a company that support other departments but do not directly contribute to revenue generation, such as maintenance and HR.

Operating Departments

Departments within an organization directly involved in its primary revenue-generating activities.

Expense Allocation

The process of assigning indirect costs to different departments, products, or other segments of a business.

Market Values

Market Values refer to the current price or value of assets, goods, or services determined through supply and demand forces in the marketplace.