Asked by Reuben Acosta on Jun 24, 2024
Verified
When you reconciled your chequebook, you had an adjusted bank balance of $2,650. You had 6 cheques outstanding with a total value of $4,100 and 2 outstanding deposits worth $1,200 each. What is the amount of your collection float?
A) $1,200
B) $2,400
C) $6,500
D) $24,600
E) $27,000
Collection Float
The time period between when a check is deposited into a bank account and when the amount is made available.
Cheques
Written, dated, and signed instruments that direct a bank to pay a specific sum of money to the bearer or a specified person.
Deposits
Funds placed into an account at a banking institution for safekeeping, which can include money market accounts, savings accounts, and certificates of deposit.
- Attain comprehension of the concept of float as it pertains to financial management, including its elements such as collection, disbursement, and net floats.
- Determine the contemporary valuation of float utilizing provided amounts of checks, times of clearance, and rates of interest.
Verified Answer
JT
Jessica TjengJun 30, 2024
Final Answer :
B
Explanation :
The collection float is the amount of the outstanding deposits, which are 2 deposits worth $1,200 each, totaling $2,400.
Learning Objectives
- Attain comprehension of the concept of float as it pertains to financial management, including its elements such as collection, disbursement, and net floats.
- Determine the contemporary valuation of float utilizing provided amounts of checks, times of clearance, and rates of interest.