Which one of the following statements is true concerning collection float?
A) Cheques received by the firm create collection float.
B) Collection float is desirable because it means that the bank thinks the firm has more cash than it really does.
C) The benefits of reducing collection float are not particularly significant.
D) When collection float increases, net float decreases.
E) Collection float increases when a lockbox system is implemented.
Correct Answer:
Verified
Q322: To use the BAT model of cash
Q323: The balance of cash shown by a
Q324: Margaret works for the No-Name Company. Her
Q325: Which of the following is correct about
Q326: Which of the following is true regarding
Q328: The need to hold cash to satisfy
Q329: Your company is thinking of installing a
Q330: Cash concentration accounts:
A) Tend to increase the
Q331: Which of the following correctly describes average
Q332: The amount of time it takes for
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents