Which of the Following Would Be Listed as an Asset

question 101

Multiple Choice

Which of the following would be listed as an asset on the balance sheet of a children's clothing shop?

• A) Interest due on startup loan
• B) Accounts receivable
• C) Retained earnings
• D) Money owed to vendors
• E) All of these

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Definitions:

Net Collection Float

The time difference between when a check is deposited and when the funds are available in the firm's account, affecting available cash.

Net Disbursement Float

The time difference between when a check is issued by a company and when the funds are actually withdrawn from the company's bank account.

Outstanding Checks

Checks that have been written and recorded in the account ledger but not yet cashed or cleared by the bank.

Availability Delay

The delay between the time a deposit is made into a bank account and the time those funds become accessible.