All of the following are different techniques that can be used to help firms reduce collection float EXCEPT
A) using drafts.
B) using wire transfers.
C) using concentration banking.
D) using a lockbox system.

Question

Quizplus · Accepted Answer

Using drafts is not a technique aimed at reducing collection float. Collection float reduction techniques are designed to speed up the process of clearing checks or payments, and drafts do not serve this purpose directly. Wire transfers, concentration banking, and lockbox systems are all methods used to accelerate the collection of funds and reduce the time funds are in limbo.

All of the Following Are Different Techniques That Can Be