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

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Definitions:

Suppliers' Expectations

The anticipations or forecasts of future conditions by suppliers that can influence their decisions on production, pricing, and stock levels.

Surplus

The amount of a commodity or service available beyond what is directly needed by its consumers, often leading to lower prices.

Demand and Supply of Wheat

The relationship between the quantity of wheat buyers are willing to purchase and the quantity of wheat producers are willing to sell at various prices.

Temporary Price

A price set for a product or service for a limited period before it is expected to change.