Which statement best describes cash management?
A) A good cash management system minimizes disbursement float and maximizes collections float.
B) If a firm begins to use a well-designed lockbox system, this will reduce its customers' net float.
C) If Firm A can get its suppliers to permit it to pay by wire transfers rather than sending cheques through the mail, this would increase Firm A's net float and thus reduce its investment in cash.
D) A highly efficient cash management system can enable a firm to always have a positive net float and a negative chequebook balance, and still not have its cheques bounce.
Correct Answer:
Verified
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