A Manager Estimates That Her Firm Benefits from an Average

question 45

Multiple Choice

A manager estimates that her firm benefits from an average float time of six days.Which of the following is true if the firm averages $15,000 per day in payments?

• A)the firm is losing interest on $90,000 per year
• B)the firm's ledger balance averages $90,000 more than the bank's ledger balance
• C)the firm has $45,000 in net float
• D)the available balance at the bank is $90,000 greater than shown on the firm's books

---

Definitions:

Quality Improvement

A systematic approach to reducing or eliminating waste, errors, and defects in a production process or service operation, aimed at enhancing customer satisfaction.

Financial Accounting

The field of accounting concerned with the summary, analysis, and reporting of financial transactions related to a business, to external stakeholders.

Managerial Accounting

Managerial accounting involves the provision of financial and non-financial decision-making information to managers, focusing on the internal needs of a business.

Managerial Accounting

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