Question
Which of the following statements regarding float is MOST true? A. A net disbursement float is generally preferred over a net collection float. B. To
Which of the following statements regarding float is MOST true?
A. A net disbursement float is generally preferred over a net 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. If Company A writes cheques to Company B, with an average processing delay of 10 days, this transaction would increase Company B's disbursement float, but decrease company A's collection float.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started