Can You Identify a Financial Accounting Decision That Requires an Accountant

question 12

Essay

Can you identify a financial accounting decision that requires an accountant working in industry to make an ethical choice?

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Definitions:

Disbursement Float

The time between when a payment is issued by a company and when the funds are actually withdrawn from the company's bank account.

Average Amount

The average amount is the sum of figures divided by the number of figures, used to find the central or typical value in a set of data.

Cheques Clear

The process by which a bank verifies the funds available in the account of the check issuer and transfers the specified amount to the recipient's account.

Miller-Orr Model

A financial management model that helps firms manage cash balances by setting upper and lower limits on cash reserves.