Which of the Following Statements Is Correct About Cash Management

question 60

Multiple Choice

Which of the following statements is correct about cash management systems?

• A) A lockbox system is useful in concentration banking.
• B) A firm that has many divisions operating over a wide geographic area will find that payables centralization offers little benefit.
• C) Disbursement float refers to the value of the checks deposited but the amount is not available in the account.
• D) There are no actions a firm can take to improve its synchronization of cash flows.
• E) Zero-Balance accounts help in managing the cash receipts of a firm.

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Definitions:

Seed Dispersal

The mechanism by which seeds are spread away from the parent plant to reduce competition and promote species spread.

Vegetative Propagation

A form of asexual reproduction in plants where new individuals arise without the production of seeds or spores, through structures such as bulbs, tubers, stolons, rhizomes, or cuttings.

Germination

The process by which a plant grows from a seed.

Fertilization

The union of a sperm cell with an egg cell, leading to the formation of a zygote and the initiation of embryonic development.