Which One of the Following Will Reduce the Disbursement Float

question 22

Multiple Choice

Which one of the following will reduce the disbursement float of a firm?

• A)Mailing a check from a very remote location
• B)Mailing an unsigned check so that it must be returned for a signature
• C)Paying a loan payment at the bank rather than mailing a check to the bank
• D)Requiring that all checks be held one day before mailing so they can be reviewed by a manager
• E)Writing checks on a zero-balance account rather than on the master account

---

Definitions:

Treasury Stock

Shares that were issued and subsequently reacquired by the issuing company, reducing the amount of outstanding stock on the open market.

Par Value

The nominal or face value of a bond, share of stock, or other financial instrument, as stated by the issuing company.

Deductible Expenses

Expenses that can be subtracted from gross income, reducing the amount of income subject to taxation.

Financial Loss

The reduction in an organization's financial wealth, usually from expenses exceeding revenues in a given period.