Which one of the following related to float management is true?
A) Float management is the practice of speeding up the disbursement of cash.
B) An objective of float management is the elimination of disbursement float.
C) An objective of float management is to reduce float by reducing sales.
D) Firms prefer net disbursement float over net collection float.
E) Float management is no longer needed.
Correct Answer:
Verified
Q11: Determining the appropriate cash balance involves assessing
Q12: Net collection float means the:
A)book balance is
Q13: Most large firms hold a larger cash
Q14: The difference between available cash and book
Q15: Collection float includes:
A)availability delay and processing delay
Q17: Collection float increases:
A)disbursement float.
B)the bank balance.
C)the book
Q18: Checks written by a firm are said
Q19: An appropriate cash balance is reached when
Q20: Financial managers frequently broaden their definition of
Q21: Money market securities are best defined as
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