For a firm that makes heavy use of net float, being able to forecast collections and disbursement check clearings is essential.

Question

Quizplus · Accepted Answer

Net float refers to the difference between the time at which funds are disbursed and the time at which the funds are collected by the recipient. For a firm that heavily relies on net float, it is important to forecast collections and disbursement check clearings to effectively manage cash flow and ensure that there is enough net float to cover any outstanding obligations. Therefore, the statement is true.

For a Firm That Makes Heavy Use of Net Float