Charlie's Bar Writes 3 Checks a Day for an Average

question 102

Multiple Choice

Charlie's Bar writes 3 checks a day for an average amount of $5,400 each. These checks generally clear the bank 4 days after they are written. In addition, the firm generally receives and deposits checks amounting to $18,700 each day. All deposits are available on the next day. What is the firm's net float?

• A) Net collection float of $13,200
• B) Net collection float of $18,700
• C) Net collection float of $22,300
• D) Net disbursement float of $46,100
• E) Net disbursement float of $64,800

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Definitions:

Pacinian Corpuscles

Sensory receptors that detect mechanical changes and vibrations, contributing to the sensation of touch and pressure.

Ruffini End Organs

Sensory receptors within the skin that respond to stretch and twisting, contributing to the sense of body position and touch.

Merkel Disks

Specialized nerve endings in the skin that respond to light touch, contributing to the sensation of texture and pressure.

Meissner Corpuscles

Special nerve cells located in the skin that detect sensations of gentle touch.