CM Enterprises Estimates That It Takes, on Average, Seven Days

question 30

Multiple Choice

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

• A) 7 days
• B) 8 days
• C) 10 days
• D) 11 days

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Definitions:

Emotional Harm

Emotional harm refers to psychological damage caused by extreme stress, trauma, or distressing experiences, impacting an individual's mental health and well-being.

Negligent Misrepresentation

A false statement made carelessly that is reasonably relied upon and causes harm or damage.

Economic Harm

Damage or detriment to one's financial condition or prospects.

Physical Injury

Bodily harm or damage that a person suffers due to an accident, violence, or other incident.