To Minimize Collection Float, a Firm Should Do Which of the Following

question 97

Multiple Choice

To minimize collection float, a firm should do which of the following?
I.Deposit its collections at least daily
II.Make sure all checks it receives at the sales counter are properly dated and signed
III.Pay its bills in a more timely manner
IV.Eliminate its regional lockboxes and have only one central lockbox located near the firm's home office

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

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Definitions:

Growth Rate

The measure of an entity’s growth, expressed in percentage terms, typically calculated for revenue or profit over a specific period.

Transaction Costs

Expenses incurred when buying or selling securities, including commissions, taxes, and other fees.

Stock Dividend

A stock dividend is a payment made in the form of additional shares rather than cash, proportional to the number of shares already owned.

Market Value

Market value refers to the current price at which an asset or service can be bought or sold in the marketplace.