On an Average Day,Wilson & Wilson Receives $7,800 in Checks

question 32

Multiple Choice

On an average day,Wilson & Wilson receives $7,800 in checks from customers.These checks clear the bank in an average of 1.7 days.The applicable daily interest rate is 0.022 percent.What is the highest daily fee this firm should pay to completely eliminate its collection float? Assume each month has 30 days.

• A)$1.72
• B)$2.92
• C)$17.20
• D)$24.30
• E)$29.17

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Definitions:

Timeliness

The quality of being done or occurring at a favorable or appropriate time.

Performance Management

A continuous process of setting objectives, assessing progress, and providing on-going feedback to ensure that employees are meeting their targets and career goals.

Performance Planning

The process of setting performance expectations and goals for teams or individuals to guide their work and evaluate their success.

Correcting

The act of identifying and rectifying errors or faults.