Which of the Following Statements Is Most Correct

question 61

Multiple Choice

Which of the following statements is most correct?

• A) A cash management system which minimizes collections float and maximizes disbursement float is better than one with higher collections float and lower disbursement float.
• B) A cash management system which maximizes collections float and minimizes disbursement float is better than one with lower collections float and higher disbursement float.
• C) The use of a lockbox is designed to minimize cash theft losses. If the cost of the lockbox is less than theft losses saved, then the lockbox should be installed.
• D) Other things held constant, a firm will need an identical line of credit if it can arrange to pay its bills by the 5th of each month than if its bills come due uniformly during the month.
• E) The statements above are all false.

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Definitions:

SmartArt

A tool in Microsoft Office applications that allows users to create visually appealing diagrams and charts from lists and bullet points.

Chart

A graphical representation of data designed to make complex information easily understandable at a glance.

Table

A structured arrangement of data made up of rows and columns, which can efficiently organize and present information.

Legend

A key or explanatory list of symbols and colors used in maps, charts, or diagrams to help users interpret the information presented.