Asked by Summer Reimer on Jul 08, 2024
Verified
Your chequebook shows you have a $10,000 balance in your account. You write cheques totaling $4,000 and make a deposit of $6,000. What is your disbursement float?
A) $2,000
B) $4,000
C) $6,000
D) $7,000
E) $8,000
Disbursement Float
The time difference between the issuance of a payment and when the funds are actually debited from the payer’s account.
Cheques
A written, dated, and signed instrument that contains an unconditional order directing a bank to pay a definite sum of money to a payee.
Deposit
A sum of money placed or kept in a bank account, often to gain interest.
- Absorb the concept of float in the field of financial management and its constituents, which include collection, disbursement, and net floats.
Verified Answer
HM
Husna MaiwandiJul 13, 2024
Final Answer :
B
Explanation :
The disbursement float is the amount of money you have written checks for but has not yet been deducted from your bank account. In this case, you have written checks totaling $4,000, which is the disbursement float.
Learning Objectives
- Absorb the concept of float in the field of financial management and its constituents, which include collection, disbursement, and net floats.