MC Enterprises Estimates That It Takes, on Average, 7 Days

question 11

Multiple Choice

MC Enterprises estimates that it takes, on average, 7 days for their customers' payments to reach them, 2 day for the payments to be processed and deposited by their bookkeeping department, and 3 more days for the checks to clear once they're deposited. What is their collection float?

• A) 12 days
• B) 10 days
• C) 9 days
• D) 7 days

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Definitions:

Licenses

Official permissions granted by an authority to an individual or organization to do something, especially to carry out a business or activity.

Tradable Emissions Permits

A market-based environmental policy instrument that allows companies to buy or sell government-granted allotments of pollution, encouraging the reduction of emissions in a cost-effective manner.

Licenses

Official permits or authorizations granted by a governing body, allowing an individual or company to carry out a particular activity or use a particular product.

Polluters

Entities, often companies or individuals, that release pollutants into the environment, causing harm or potential harm.