Payment Float Reflects the Amount on Cheques Written by a Company

question 17

True/False

Payment float reflects the amount on cheques written by a company that has not been cleared.

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Definitions:

Equilibrium Price

The cost point where the amount of a product or service consumers want to buy matches the amount available, resulting in a balanced market.

Equilibrium Quantity

The quantity of goods or services supplied equals the quantity demanded at the market equilibrium price.

Efficiency

The optimal use of resources to achieve the desired outcome with minimal waste or effort.

Equity

Refers to fairness or justice in the distribution of wealth, resources, and opportunities.