Which of the following is true regarding float?
A) Cheques written by a firm generate collection float.
B) Cheques received by a firm create disbursement float.
C) In general, a firm's disbursement activities and its collection activities generate float.
D) A firm's float is negative when its available balance equals its book balance.
E) A firm cannot exploit float by using the cash needed to cover a cheque that has not yet cleared.
Correct Answer:
Verified
Q286: A lockbox system:
A) Entails the use of
Q287: Collection time:
A) Is equal to mail time
Q288: The fixed cost of a securities trade:
A)
Q289: The costs of holding too little cash
Q290: Money market instruments tend to:
A) Have relatively
Q292: A firm has $33,080 in outstanding checks
Q293: The time between the receipt of a
Q294: The direct deposit of paycheques and the
Q295: The difference between a firm's book balance
Q296: Which of the following statements is correct?
A)
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