An important objective of cash management is to ________ the disbursement float and ________ the collection float.
A)lengthen; reduce
B)lengthen; lengthen
C)reduce; reduce
D)reduce; lengthen

Question

Quizplus · Accepted Answer

Lengthening the disbursement float means delaying outflows of cash as long as possible, while reducing the collection float means accelerating the inflow of cash. This combination improves a company's cash position.

An Important Objective of Cash Management Is to ________ the Disbursement