n a typical day, a company writes 51 checks worth a total of $8,920 that clear in 3.75 days. The company also coll 0,090 that clear in 3.25 days. Is this a collection or disbursement float? What is the amount of the float?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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On a typical day, a company writes 51 checks worth a total of $8,920 that clear in 3.75 days. The company also collects 63 checks worth a total of
$10,090 that clear in 3.25 days. Is this a collection or disbursement float? What is the amount of the float?
Multiple Choice
A disbursement float of $1,170
A disbursement float of $658
A collection float of $815
A collection float of $658
A collection float of $1,170
Transcribed Image Text:On a typical day, a company writes 51 checks worth a total of $8,920 that clear in 3.75 days. The company also collects 63 checks worth a total of $10,090 that clear in 3.25 days. Is this a collection or disbursement float? What is the amount of the float? Multiple Choice A disbursement float of $1,170 A disbursement float of $658 A collection float of $815 A collection float of $658 A collection float of $1,170
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