From the Payor's Perspective,float Adds Value Because of the Delay

question 27

Multiple Choice

From the payor's perspective,float adds value because of the delay between the point in time when a check _______________ and the point in time when the check ________________________.

• A)is written,is debited to the payor's account
• B)is mailed,is deposited by the payee
• C)is deposited,is debited to the payor's account
• D)is mailed,is processed by the bank of first deposit

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Definitions:

Beginning Inventory

The value of goods available for sale at the start of an accounting period, before any purchases are added or sales are subtracted.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including material and labor costs.

Ending Inventory

The value of goods available for sale at the end of an accounting period, calculated before the next period's inventory is added.

Net Income

The net income of a company once all costs and taxes are subtracted from its revenues.