Which of the Following Best Describes the Availability Float

question 68

Multiple Choice

Which of the following best describes the availability float?

• A)how long it takes before payments to suppliers actually result in a cash outflow for the firm
• B)how long it takes before the bank gives the firm credit for the funds
• C)how long it takes the firm to process the check and deposit it in the bank
• 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:

Undervalued

Describes a security or other type of investment that is selling for a price presumed to be less than its true intrinsic value.

Overvalued

A term describing a situation in which a security or an asset is trading at a price exceeding its intrinsic value.

Noncontrolling Interest

Noncontrolling interest, also known as minority interest, represents the portion of a subsidiary company’s equity that is not owned by the parent company.

Acquisition Method

An accounting technique used in consolidating the financial statements of a group of companies when one acquires control over the other.