Which of the Following Practices Will Reduce a Firm's Collection

question 94

Multiple Choice

Which of the following 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:

Untimely Death

refers to a death that occurs unexpectedly or prematurely, often due to accident, violence, or sudden illness.

Heirs Object

The act of legal beneficiaries or heirs expressing opposition or contesting certain aspects of a will or estate settlement.

Depositary Bank

A bank that holds securities in its custody for depositors and facilitates the exchange and transactions of these securities.

Electronic Funds Transfer Act

A federal law that protects consumers engaging in the transfer of funds through electronic methods, ensuring their rights and establishing responsibilities for institutions.