As of Monday Morning,the Ledger Balance and the Available Balance

question 57

Multiple Choice

As of Monday morning,the ledger balance and the available balance for a firm was $3,600.During the day,the firm wrote three checks in the amounts of $230,$590,and $870.The firm deposited a check for $350 and a check for $920.What is the amount of the collection float as of the end of the day?

• A)$420
• B)$580
• C)$840
• D)$1,270
• E)$1,690

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Definitions:

Flexible Budget

A financial plan that modifies itself in response to variations in volume or activity intensity.

Spending Variance

The difference between the actual amount spent and the budgeted or standard amount expected to be spent.

Net Operating Income

Income before interest and income taxes have been deducted.

Flexible Budget Performance Report

A report that compares the actual performance of a business to a budget that adjusts with the level of activity, providing insight into variance reasons.