Which of the following statements is true?
A) Collection float is the time that elapses between when a customer mails a payment and when the cheque is actually received.
B) Collection float is the time that elapses between when the company receives a customer's payment and when the cheque is deposited in the bank.
C) Collection float includes mail float while disbursement float does not.
D) Collection float is the time that elapses between when the company deposits cheques into the bank and when the cheques are presented to the customers' banks for payment.
E) Collection float is equal to the sum of mail and processing floats, minus the availability float.
Correct Answer:
Verified
Q262: A firm's available balance is defined as
Q263: Disbursement float is defined as the:
A) Period
Q264: The Miller-Orr model:
A) Is more simplistic than
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Q266: Lockboxes are used to:
A) Distribute payroll cheques.
B)
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Q270: Which of the following is the best
Q271: Collection float:
A) Is more desirable to firms
Q272: In the Miller-Orr model of cash management
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