Which one of the following statements is correct? A)Firms cannot use lockboxes if they use cash concentration accounts. B)Firms prefer to increase processing delay on disbursements. C)Firms prefer to eliminate all types of float. D)Firms open regional offices so their employees can pick up lockbox payments throughout the day. E)The Check Clearing Act for the 21^st Century is designed to reduce the collection time to one day.

Question

Quizplus · Accepted Answer

Firms prefer to increase processing delay on disbursements to slow down the outflow of cash, which helps in managing their cash flow more effectively.

Which One of the Following Statements Is Correct