Al's Bakery has a checkbook balance of $1,650.A $700 deposit was made today and will be added to the available balance tomorrow.There are two outstanding checks that total to $623 that should clear tomorrow.There are no other outstanding items.Which one of the following statements accurately reflects this situation?
A)The disbursement float is $1,650.
B)The firm's current available balance is equal to $1,650 plus $700 minus $623.
C)The firm's collection float exceeds its disbursement float.
D)The firm's available balance is greater than its book balance.
E)The firm has a net disbursement float.

Question

Quizplus · Accepted Answer

The Answer of Al's Bakery has a checkbook balance of $1,650.A $700 deposit was made today and will be added to the available balance tomorrow.There are two outstanding checks that total to $623 that should clear tomorrow.There are no other outstanding items.Which one of the following statements accurately reflects this situation?
A)The disbursement float is $1,650.
B)The firm's current available balance is equal to $1,650 plus $700 minus $623.
C)The firm's collection float exceeds its disbursement float.
D)The firm's available balance is greater than its book balance.
E)The firm has a net disbursement float.

Al's Bakery Has a Checkbook Balance of $1,650