Collection Float

question 7

Multiple Choice

Collection float:

• A)is more desirable to firms than disbursement float.
• B)is totally eliminated by the installation of a lockbox system.
• C)exists when a firm's available balance exceeds its book balance.
• D)can be avoided by collecting payments electronically at the time of sale.
• E)is eliminated by implementing a concentration banking system.

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Definitions:

Organizational Patterns

The structures used to arrange or classify information, ideas, or items in writing or speeches, such as chronological or cause-and-effect.

Conforms

To act in accordance or harmony with established rules, standards, or patterns.

Efficient

Being effective without wasting time, effort, or resources.

Complicated

Something that is complex, not simple, involving many different and connected parts.