On an Average Day,a Company Writes Checks Totaling $1,500

question 24

Multiple Choice

On an average day,a company writes checks totaling $1,500. These checks take 7 days to clear. The company receives checks totaling $1,800. These checks take 4 days to clear. The cost of debt is 9%. What is the firm's collection float?

• A) $-7,200
• B) $-1,800
• C) $1,800
• D) $10,500
• E) None of these.

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Definitions:

Total Utility Data

Information that represents the total satisfaction received from consuming a certain amount of goods or services.

Money Income

The total amount of monetary earnings or receipts accruing to an individual or household before taxes and other deductions.

Rational Consumer

An individual who makes purchase decisions that maximize their utility, given their budget constraints.

Utility Schedule

A utility schedule is a table or graph showing the levels of satisfaction or utility that a consumer gets from consuming different quantities of a good or service.