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Which of the following statements regarding float is MOST true? A . If Company A writes cheques to Company B , with an average processing
Which of the following statements regarding float is MOST true?
A If Company A writes cheques to Company B with an average processing delay of days, this transaction would increase Company Bs disbursement float, but decrease company As collection float.
B To maximize the potential benefits of net float, firms should pay bills electronically, but request that customers pay by cheque.
C A disadvantage of a disbursement float is that less bank funds are available to earn interest.
D A net disbursement float is generally preferred over a net collection float.
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