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Al's Bakery has a checkbook balance of $1,650. A $700 deposit was made today and will be added to the available balance tomorrow. There are two outstanding checks that total to $623 that should clear tomorrow. There are no other outstanding items. Which one of the following statements accurately reflects this situation?
a. The firm's current available balance is equal to $1,650 plus $700 minus $623.
b. The disbursement float is $1,650.
c. The firm's available balance is greater than its book balance.
d. The firm's collection float exceeds its disbursement float.
e. The firm has a net disbursement float.

Answer :

Answer: D. The firm's collection float exceeds its disbursement float

Explanation:

Based on the information given in the question, the collection float will be $700. This refers to the check that hasn't been credited yet to AI's Bakery account.

Then, the disbursement float is $623. Therefore, we can infer that the collection float is more than the disbursement float.

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