Cash Management. Complete the following passage by choosing the appropriate term from the following list: lock-box banking, wire transfer, payment float, concentration banking, availability float, net float, depository transfer check.

The firm’s available balance is equal to its ledger balance plus the ________ and minus the ________. The difference between the available balance and the ledger balance is often called the ________. Firms can increase their cash resources by speeding up collections.

One way to do this is to arrange for payments to be made to regional offices which pay the checks into local banks. This is known as ________. Surplus funds are then transferred from the local bank to one of the company’s main banks. Transfer may be by the quick but expensive ________ or by the slightly slower but cheaper ________. Another technique is to arrange for a local bank to collect the checks directly from a post office box. This is known as ________.