The Deerfield Beach payment schedule shows vendor bills due of $198,500. Cash available is $214,000, but management wants a $28,000 cash floor. How much cash remains after paying the due bills?
Correct Answer
D) $-12,500
Cash remaining after payment equals available cash less the desired floor and due bills.
Why This Is the Correct Answer
Cash remaining after payment equals available cash less the desired floor and due bills.
Why the Other Options Are Wrong
Option A: $15,500
$15,500 is above the supported result for payment scheduling; it likely adds an unsupported amount or compares the wrong financial base.
Option B: $186,000
$186,000 is above the supported result for payment scheduling; it likely adds an unsupported amount or compares the wrong financial base.
Option C: $170,500
$170,500 is above the supported result for payment scheduling; it likely adds an unsupported amount or compares the wrong financial base.
Memory Technique
Controller Reviews money test: bucket before math for payment scheduling.
Reference Hint
Open-book path: tab Contractor's Manual, 2025 to Business Administration, Payment Scheduling and Cash Control; confirm the administrative procedure and required supporting record.
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