Solved

Stewart's Office Supply Has Revised Its Office Procedures Such That

Question 31

Multiple Choice

Stewart's Office Supply has revised its office procedures such that it now takes 1 day to prepare the daily deposit, rather than 2 days. Accounts payables are processed in 5 days, rather than the previous 4 days, so that shipping and receiving can better verify the charges before the checks are written. How will these revised procedures affect the firm's float?


A) Increase the disbursement float by 1 day
B) Decrease the collection float by 1 day
C) Decrease the net float by 2 days
D) Increase the net float by 2 days
E) No effect on the firm's float

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents