Which of the following is not true of float management?

Question

Quizplus · Accepted Answer

The statement "Float management will succeed if the firm can collect late and pay early" is not true. While float management does involve managing the collection and disbursement of cash, the objective is to minimize the total float (the time between when a payment is made and when it is cleared by the bank), not to collect late or pay early. Achieving a smaller total float can be done by speeding up the collection float or slowing down the disbursement float, but the ultimate goal is reducing the overall time that cash is tied up in transit.

Which of the Following Is Not True of Float Management