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

Question

Quizplus · Accepted Answer

Net float is the difference between the disbursement float and the collection float. In this case, the disbursement float is $53,000 ($25,000 + $15,000 + $13,000) and the collection float is $30,000. Therefore, the net float is $23,000 ($53,000 - $30,000). Since the net float is positive, the answer is B) +$23,000.

A Firm Issued Three Checks for $25,000,$15,000,and $13,000 on January