For a Firm That Makes Heavy Use of Net Float

question 26

True/False

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

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Definitions:

Compensatory Order

A compensatory order is a legal direction to pay restitution, typically in civil litigation, designed to cover the loss or injury suffered by a plaintiff.

Equitable Remedies

Legal solutions given by a court based on fairness rather than strictly on laws, such as injunctions or specific performance.

Injunction

A court order requiring an individual or entity to do or cease doing a specific action.

Consequential Damages

Consequential damages refer to losses or harm that do not directly stem from a party’s actions but are a secondary result of those actions.