Which One of the Following Statements Concerning Disbursement Float Is

question 9

Multiple Choice

Which one of the following statements concerning disbursement float is correct?

• A)Disbursement float is the period of time between a firm making a bank deposit and the funds from that deposit being available to the firm.
• B)Disbursement float decreases when a check is delayed in the mail due to an extended holiday weekend.
• C)Disbursement float causes the available balance to exceed the ledger balance.
• D)Disbursement float is being totally eliminated by the Check Clearing Act for the 21^st Century.
• E)Disbursement float exists when the available balance is less than the book balance.

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Definitions:

Fixed Costs

Expenses that do not change with the volume of production or sales, such as rent or salaries.

Technology A

Refers to a generic term used to describe a specific technology, typically when comparing it to another technology (e.g., Technology B).

Break Even

The point at which total costs and total revenues are equal, resulting in no profit or loss for a business.

Fixed Costs

Expenses that remain constant regardless of the amount of goods produced or sold, including items like lease payments, wages, and insurance costs.