A Firm Has $16,718 in Outstanding Checks That Have Not

question 94

Multiple Choice

A firm has $16,718 in outstanding checks that have not cleared the bank.The firm also has $13,450 in deposits that have been recorded by the firm but not by the bank.The current available balance is $11,407.What is the status of the net float?

• A)net collection float of $8,138
• B)net collection float of $2,043
• C)net collection float of $13,450
• D)net disbursement float of $3,268
• E)net disbursement float of $5,311

---

Definitions:

Fixed Costs

Expenses that remain consistent regardless of production or sales volume, including rent, salaries, and insurance premiums.

Variable Costs

Expenses that vary depending on the amount of products or services a company generates.

Industry Life Cycle

A concept describing the stages of growth, maturity, and decline that industries experience over time.

Stable Growth

A phase where a company or economy grows at a steady, predictable rate.