"Float" Is the Term Given to

question 103

Multiple Choice

"Float" is the term given to

• A) differences between the cash balance and the balance of cash plus marketable securities.
• B) differences between the cash balance in the ledger and the funds available in the firm's checking account.
• C) the period between the date an invoice is received and the date on which it must be paid.
• D) the practice of deliberately delaying payments beyond the due date.

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Definitions:

Natural Disaster

A major adverse event resulting from natural processes of the Earth, such as floods, hurricanes, earthquakes, or volcanic eruptions, that can cause significant damage or loss of life.

Inventory Records

Documents that track the quantities, conditions, and locations of products a company has in stock, including raw materials, work-in-process, and finished goods.

Days' Sales in Inventory

A financial ratio indicating the average number of days it takes a company to sell its entire inventory in a given period.

Replace Inventory

The process of replenishing stock to ensure sufficient levels of inventory are maintained for operations.