Which One of the Following Statements Is True Concerning Collection

question 303

Multiple Choice

Which one of the following statements is true concerning collection float?

• A) Cheques received by the firm create collection float.
• B) Collection float is desirable because it means that the bank thinks the firm has more cash than it really does.
• C) The benefits of reducing collection float are not particularly significant.
• D) When collection float increases, net float decreases.
• E) Collection float increases when a lockbox system is implemented.

Understand medical terms related to respiratory system anatomy and functions.

Learn the prefix, suffix, and roots of medical terms and their meanings.

Identify the common medical conditions and procedures related to the respiratory system.

Recognize the medical terms related to breathing conditions and patterns.

---

Definitions:

Deposited

Placing money into a financial account or institution for safekeeping or investment purposes.

Collection Float

The time period between when a check is deposited and when the funds are available in the payee’s account, reflecting the bank’s processing time.

Banking System

denotes the network of institutions that provide financial services, including deposits, loans, and currency exchanges.