Answer is A.
Average daily float :
Float is money that appears in two bank accounts at once, due to a delay in processing.
Average daily float refers to the dollar amount of checks or other negotiable instruments that are in the process of collection by a bank, financial institution, or other entity over a certain period, divided by the number of days in the period.
Average Daily Float = ($16,000 x 2days) / 30days = $1066.67
This means that on average over the course of the month, this bank, financial institution, or other entity has access to $1066.67 of float each day. And it can earn interest on this float.
Question 29 Not yet answered Marked out of 3.00 P Flag question In a typical month,...
In a typical month, Kids Fun’s Playground Company receives 45 cheques totalling $16,000. These cheques are delayed two days on average. What is the average daily float if there is 30 days in a month? Select one: a. $1,066.67 b. $1,360.05 c. $1,165.00 d. $1,166.65
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