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Ted's Toys just reconciled its bank account and has $ 1 2 , 3 0 0 in outstanding deposits and $ 3 1 , 4
Ted's Toys just reconciled its bank account and has $ in outstanding deposits and $ in checks outstanding. The firm's checkbook has a positive balance. The firm sells on a cash basis only and deposits its receipts on a daily basis. The deposited funds are available to the firm the following day. The firm writes and mails checks on a daily basis also. These checks generally clear the bank in three days. What do you know about the firm's float given this information? A The firm has disbursements float but no collection float. B The collection float exceeds the disbursement float. C The firm has a net collection float. D The disbursement float exceeds the collection float. E Since transactions occur daily, the firm has no float.
Ted's Toys just reconciled its bank account and has $ in outstanding deposits and $ in
checks outstanding. The firm's checkbook has a positive balance. The firm sells on a cash basis only and
deposits its receipts on a daily basis. The deposited funds are available to the firm the following day. The
firm writes and mails checks on a daily basis also. These checks generally clear the bank in three days.
What do you know about the firm's float given this information?
A The firm has disbursements float but no collection float.
B The collection float exceeds the disbursement float.
C The firm has a net collection float.
D The disbursement float exceeds the collection float.
E Since transactions occur daily, the firm has no float.
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