A Manager Estimates That Her Firm Benefits from an Average

question 108

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:

Marginal Benefit

The additional satisfaction or value a consumer gains from consuming one more unit of a good or service.

Marginal Cost

The increase in cost that arises from an additional unit of production.

Sherman Act

A landmark federal statute in the field of United States antitrust law passed in 1890 that prohibits certain business activities that reduce competition in the marketplace.

Clayton Act

A U.S. antitrust law aimed at increasing competition by preventing unfair trade practices and monopolies.