Which of These Practices Will Reduce a Firm's Collection Float

question 96

Multiple Choice

Which of these practices will reduce a firm's collection float?
I.Installing a lockbox system
II.Utilizing zero-balance accounts
III.Depositing checks daily rather than weekly
IV.Reducing the processing delay by one day

• A)I and III only
• B)II and IV only
• C)I, II, and III only
• D)I, III, and IV only
• E)I, II, III, and IV

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Definitions:

Immediate Gratification

The desire to experience pleasure or fulfillment without delay or deferment.

Permissive

A term often describing an attitude, behavior, or policy that allows or tolerates actions that were formerly disapproved of or restricted.

Absolute Poverty

A condition where individuals or families cannot meet basic needs for survival, such as food, shelter, and clothing.

Basic Necessities

Refers to essential items and services required for individuals to live and function, such as food, shelter, clothing, and healthcare.