Which one of the following statements is correct?
A) Net float decreases every time a firm issues a check to pay one of its suppliers.
B) A positive net float indicates that collection float exceeds disbursements float.
C) Firms prefer a zero net float over a positive net float.
D) Net float is equal to collection float minus disbursement float.
E) Net float is equal to a firm's available balance minus its book balance.
Correct Answer:
Verified
Q5: A lockbox system:
A)entails the use of a
Q6: GT Motors regularly issues short-term debt to
Q7: The Snow Hut has analyzed the carrying
Q8: Float is defined as the:
A)amount of cash
Q9: An account into which a firm transfers
Q11: Yesterday,the president of RB Enterprises received a
Q12: Adjustment costs is another name for which
Q13: Cash management primarily involves:
A)optimizing a firm's collections
Q14: Check kiting is:
A)used by most firms as
Q15: Which of the following should help reduce
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents