Jumpdisk Company Writes Checks Averaging R15,000 a Day, and It

question 103

Multiple Choice

Jumpdisk Company writes checks averaging R15,000 a day, and it takes 5 days for these checks to clear.The firm also receives checks in the amount of R17,000 per day, but the firm loses three days while its receipts are being deposited and cleared.What is the firm's net float in rands?

• A) R126,000
• B) R75,000
• C) R32,000
• D) R24,000
• E) R16,000

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Definitions:

Developing Nations

Countries with a lower standard of living, underdeveloped industrial base, and low Human Development Index relative to other countries.

Foreign Corrupt Practices Act

A U.S. law that prohibits American companies and their subsidiaries from bribing foreign officials to retain or obtain business.

Fines

Monetary penalties imposed as punishment for breaking laws or regulations.

Domestic Concern

Matters or businesses pertaining to the internal affairs or operations of a specific country.