Which of the Following Best Describes the Availability Float

question 102

Multiple Choice

Which of the following best describes the availability float?

• A) how long it takes the firm to process the check and deposit it in the bank
• B) how long it takes before the bank gives the firm credit for the funds
• C) how long it takes before payments to suppliers actually result in a cash outflow for the firm
• D) how long it takes for a firm to be able to use funds after a customer has paid for its goods

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Definitions:

Ending Inventory

The total value of all goods available for sale at the end of an accounting period.

Merchandising Company

A type of business that purchases products to resell them at a profit without changing their form.

Ending Finished Goods

The inventory of goods manufactured and ready for sale at the end of an accounting period.

Cost of Goods Manufactured

The total production cost of goods completed during a specific period, including the costs of materials, labor, and manufacturing overhead.