"Extended Disbursement Float" Has to Do with the Length of Time

question 73

True/False

"Extended disbursement float" has to do with the length of time a corporation takes to collect bills.

Understand the impact of Federal Reserve's actions on interest rates and investment spending.

Grasp the relationship between monetary policy actions and inflation.

Know the composition and functions of legal reserves.

Identify and distinguish between the different tools the Federal Reserve uses to control the money supply.

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Definitions:

Unearned Revenue

Money received by an entity for goods or services to be provided in the future, recognized as a liability until the service is performed.

Net Income

The amount of money a company makes once it has paid off all expenses and taxes from its revenue.

Ending Inventory

At the close of an accounting cycle, the valuation of products set for sale, computed by taking the initial inventory, adding the acquisitions, and deducting the cost of goods sold.