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:
Verified
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