Your company has an available balance of $5,980. A deposit of $1,470 that was made this morning is not yet included in the bank's balance. There are also 2 checks outstanding with a value of $495 each. What is the net float?

Question

Quizplus · Accepted Answer

The net float is calculated by subtracting the total of outstanding checks from the deposits in transit. Here, the deposit in transit is $1,470 and the total of outstanding checks is $990 ($495 x 2). Therefore, the net float is $480 ($1,470 - $990), which is a net collection float because the deposits in transit exceed the outstanding checks.

Your Company Has an Available Balance of $5,980