A retailer sells most of its merchandise on credit and bills clients monthly.Which of the following elements of float does the retailer have the most control over?
A) mail float
B) processing float
C) transit float
D) disbursing float

Question

Quizplus · Accepted Answer

The retailer has the most control over processing float, which can be minimized by efficiently processing and posting payments received from clients on credit. The retailer has little control over mail float, transit float, or disbursing float, which are influenced by factors such as postal delivery times, transportation delays, and payment processing timelines beyond the retailer's control.

A Retailer Sells Most of Its Merchandise on Credit and Bills