Shamba Corporation Writes Cheques That Average $90,000 and Take on Average

question 85

Multiple Choice

Shamba Corporation writes cheques that average $90,000 and take on average 5 days to clear.Cheques are received with an average value of $45,000 and take 9 days to clear.Determine the net float.

• A)$45,000
• B)$60,000
• C)$855,000
• D)$135,000

---

Definitions:

Course of Dealing

The conduct between parties in previous transactions that establishes a common basis for their understanding.

Conforming Goods

Products or materials that meet the specifications and standards outlined in a contract or agreement between buyer and seller.

Course of Performance

A term referring to the conduct between parties that is used to interpret their agreement within their ongoing business relationship.

Usage of Trade

Established practices or methods of dealing regularly observed in a particular industry or trade.