Disbursements Float

question 32

Multiple Choice

Disbursements float:

• A) occurs when a deposit is recorded but the funds are unavailable.
• B) causes the book balance to exceed the bank balance.
• C) has tended to increase since the enactment of the Check Clearing Act for the 21st Century.
• D) is a recommended source of funds for short-term investments.
• E) is eliminated when payments are made electronically.

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Definitions:

Quarterly Dividends

Dividend payments made by a corporation to its shareholders every quarter of the financial year.

Preferred Stock

A class of stock that typically provides dividends to its holders before common stock and may have priority over common stock in the event of a liquidation.

Dividend Growth

The yearly percentage growth rate of a company's dividend disbursements.