Collection flOat

question 24

Multiple Choice

Collection float:

• A) Is more desirable to firms than disbursement float.
• B) Is fully eliminated by the installation of a lockbox system.
• C) Exists when a firm's available balance exceeds its book balance.
• D) Increases for a firm when its customers opt to pay their bills electronically.
• E) Can increase the investment income of a firm if the firm can eliminate such float.

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Definitions:

Defense Spending

Government expenditure on military forces and activities, including salaries, equipment, construction, and research and development.

Means of Production

The facilities, resources, and tools used to produce goods and services in an economy, often discussed in Marxist economic theories.

Economic Role

The function or position that an entity (such as an individual, firm, or government) plays within the larger economic system.

Personal Income Tax

A tax levied on individuals' earned income, including wages, salaries, and other earnings, differentiated by factors such as level of income, marital status, and others.