You Are in an Arena Watching a Hockey Game

question 176

Multiple Choice

You are in an arena watching a hockey game. In the third period you ask the person sitting next to you if they know how much time is left. They laugh at you before pointing at a giant clock that had been in front of you the whole game. What can help explain the fact that you missed something that seems so obvious?

• A)shadowing
• B)inattentional blindness
• C)bottom-up processing
• D)monocular depth cues
• E)binocular depth cues

Recognize the significance of electronic transactions and their influence on reducing collection and disbursement floats.

Comprehend the concept of net float and its importance in cash management.

Understand the role and mechanism of preauthorized payments and their impact on collection time.

Grasp the workings and benefits of a lockbox system in improving cash management.

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Definitions:

Net 45

A payment term indicating the buyer must complete payment within 45 days from the invoice date.

Break-Even Point

The point at which total costs and total revenues are equal, meaning there is no net loss or gain.

Variable Cost

Costs that vary directly with the level of production or output, such as materials and labor expenses.

Monthly Interest Rate

The interest rate applicable to an investment or loan on a monthly basis.