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?

Question

Quizplus · Accepted Answer

The collection float is the total amount of deposits in transit, or outstanding deposits that have not yet been credited to the account. In this scenario, there are two outstanding deposits worth $1,200 each, which adds up to a collection float of $2,400 (2 x $1,200). The other outstanding items, such as the 6 cheques, do not affect the collection float as they are already accounted for in the adjusted bank balance. Thus, the best choice is B.

When You Reconciled Your Chequebook, You Had an Adjusted Bank