A firm issued three cheques for $25,000, $15,000, and $13,000 on January 31, and deposited a $30,000 cheque into the bank account.None of the cheques were cleared by February 1.What is the net float from these transactions?

Question

Quizplus · Accepted Answer

The payment float is $53,000 (the total amount of the three cheques issued).
The availability float is $30,000 (the amount of the cheque deposited in the bank).
Therefore, the net float is $23,000 (payment float - availability float).
Since the net float is positive, it means that the firm has access to more funds than what is currently available in the bank account. Hence, the correct answer is B (+$23,000).

A Firm Issued Three Cheques for $25,000, $15,000, and $13,000