A firm's float management policy is most apt to include which one of the following statements?
A) All invoices are to be paid the same day they are received.
B) All outgoing checks are to be delivered by the fastest means possible.
C) The depository bank needs to process all deposits in accordance with the Check Clearing Act for the Century.
D) Any check received is to be held until the customer's account has been updated to record the payment.
E) Accounts payables processing should be given priority over accounts receivables processing.

Question

A firm's float management policy is most apt to include which one of the following statements?
A) All invoices are to be paid the same day they are received. 
B) All outgoing checks are to be delivered by the fastest means possible. 
C) The depository bank needs to process all deposits in accordance with the Check Clearing Act for the Century. 
D) Any check received is to be held until the customer's account has been updated to record the payment. 
E) Accounts payables processing should be given priority over accounts receivables processing.

Quizplus · Accepted Answer

The statement "The depository bank needs to process all deposits in accordance with the Check Clearing Act for the 11ea6eac_0f92_cab9_8f54_436b38b195f0_TB2378_11 Century" relates to float management policy as it ensures that the firm's deposits are processed in a timely and efficient manner, maximizing the available float. The other statements are not directly related to float management policy.

A Firm's Float Management Policy Is Most Apt to Include