Which statement best describes cash management?
A) A cash management system that minimizes collections float and maximizes disbursement float is better than one with higher collections float and lower disbursement float.
B) A cash management system that maximizes collections float and minimizes disbursement float is better than one with lower collections float and higher disbursement float.
C) The use of a lockbox is designed to minimize cash theft losses in retail stores. If the cost of the lockbox is less than theft losses saved, then the lockbox should be installed.
D) Other things held constant, a firm will need an identical line of credit regardless of whether it must pay its bills by the 5th of each month or pay its bills due uniformly during the month.
Correct Answer:
Verified
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