Al's Bakery Has a Checkbook Balance of $1,650

question 5

Multiple Choice

Al's Bakery has a checkbook balance of $1,650.A $700 deposit was made today and will be added to the available balance tomorrow.There are two outstanding checks that total to $623 that should clear tomorrow.There are no other outstanding items.Which one of the following statements accurately reflects this situation?

• A)The disbursement float is $1,650.
• B)The firm's current available balance is equal to $1,650 plus $700 minus $623.
• C)The firm's collection float exceeds its disbursement float.
• D)The firm's available balance is greater than its book balance.
• E)The firm has a net disbursement float.

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Definitions:

Formal Written Agreement

A legally binding contract that is documented in writing and signed by all parties involved.

Implied Acceptance

An agreement to the terms of a contract demonstrated through actions or behaviors, rather than explicitly communicated through words.

Telegram Acceptance

The acceptance of a contractual offer or agreement through a telegram, historically significant for its immediacy and legal recognition.

Binding Contract

A binding contract is a legally enforceable agreement between two or more parties that is recognized by law, where each party has made promises or agreements that must be fulfilled.