A lockbox system can reduce all of the following elements of float except:
A) mail float.
B) processing float.
C) transit float.
D) disbursing float.

Question

Quizplus · Accepted Answer

A lockbox system is designed to reduce time lags between receiving and processing payments. It can minimize mail float, processing float, and transit float by allowing payments to be processed upon receipt. However, disbursing float cannot be reduced by a lockbox system since it refers to the time lag between the release of funds by the payer and the availability of funds to the payee.

A Lockbox System Can Reduce All of the Following Elements