Describe the term “float.”
What will be an ideal response?
Float is the amount of money that has not yet been withdrawn from the company’s checking account even though the checks have been written. In a checking account, you may notice that when you balance it at the end of the month, some of the checks you have written have not yet cleared. Therefore, the balance on your statement is greater than the balance in your checkbook. The difference is float. The same is true for businesses. Actions taken by the Federal Reserve System and advances in electronic payment systems have resulted in float being less significant today than in the past. However, float still occurs, with three primary components: mail float, processing float, and check-cleaning float.
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Which of the following represents one of the purposes of the notes to financial statements?
a. To provide a place for management to justify questionable items in the statements b. To provide comparative ratios for the company's financial data c. To provide the CPA's opinion of the fairness of the financial statements d. To satisfy the need for full disclosure of all the facts relevant to a company's results and financial position
Discrimination that is embedded in the policies and practices of places like schools, banks, governments, etc. is called
A) discrimination B) institutional racism C) prejudice D) racism
A sole proprietorship can have multiple owners
Indicate whether the statement is true or false
If fixed costs go up, and all other factors remain the same, the margin of safety will become larger.
Answer the following statement(s) true (T) or false (F)