Which of the Following Best Describes the Availability Float

question 64

Multiple Choice

Which of the following best describes the availability float?

• A)how long it takes the firm to process the cheque 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
• E)how long it takes before payments to suppliers actually result in cash outflow for the firm

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Definitions:

Standard of Living

A measure of the wealth, comfort, material goods, and necessities available to a certain socioeconomic class in a certain geographic area.

Equal Distribution

The equitable allocation of resources, income, or assets among all members of a society or group.

Income

The total money received by an individual or household over a specified time period, including wages, salaries, benefits, and other earnings.

Positive Economic Statement

An objective statement based on facts that can be tested or validated, focusing on descriptions of what is rather than what ought to be.