Which of these practices will reduce a firm's collection float?
I.Installing a lockbox system
II.Utilizing zero-balance accounts
III.Depositing checks daily rather than weekly
IV.Reducing the processing delay by one day
A)I and III only
B)II and IV only
C)I, II, and III only
D)I, III, and IV only
E)I, II, III, and IV

Question

Quizplus · Accepted Answer

Installing a lockbox system, depositing checks daily, and reducing processing delay all help in reducing the time it takes for a firm to collect payments, thus reducing the collection float. Zero-balance accounts do not directly reduce collection float.

Which of These Practices Will Reduce a Firm's Collection Float