When Firms Select Banks and Write Cheques in a Manner

question 26

Multiple Choice

When firms select banks and write cheques in a manner exclusively intended to create float they are:

• A)Playing the float
• B)Reducing the bank's ledger balance
• C)Kiting cheques
• D)Reducing the firm's net float

---

Definitions:

Average Inventory

The mean value of a company's inventory over a specific period of time, used to calculate cost of goods sold and other financial metrics.

Days In Inventory

Days in inventory is a financial metric that measures the average number of days a company holds inventory before selling it, indicating the efficiency of inventory management.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year.

Dividend Yield

A metric indicating the annual dividends a firm distributes in relation to its share price.