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

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Definitions:

Fixed Expenses

Fixed expenses that are unaffected by the volume of manufacturing or sales activities, and include items like rental costs, employee salaries, and premiums for insurance.

Monthly Advertising Budget

The allocated amount of spending for advertising activities planned for a month.

Net Operating Income

The total profit of a company after operating expenses are subtracted from gross profit but before interest and taxes.

Sales Volume

The total number of units of a product or service sold during a specific period.