Collection flOat

question 250

Multiple Choice

Collection float:

• A) Is the result of sending a cheque through the mail to one of your suppliers.
• B) Increases the available balance before it increases the ledger balance.
• C) Allows you to earn interest on money that technically is no longer yours.
• D) Is equal to a firm's available balance minus the firm's book balance.
• E) Can be reduced by slowing down the cheque processing time within a firm.

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Definitions:

Criteria

Standards or principles by which something is judged or decisions are made.

Visual Representations

Images, graphs, charts, or other visual elements used to convey information or data.

Businesses

Organizations engaged in commercial, industrial, or professional activities, aiming to earn a profit by providing goods or services.

Consumers

Individuals or groups who purchase goods and services for personal use.