A Firm's Float Management Policy Is Most Apt to Include

question 66

Multiple Choice

A firm's float management policy is most apt to include which one of the following statements?

• A)All invoices are to be paid the same day they are received.
• B)All outgoing checks are to be delivered by the fastest means possible.
• C)The depository bank needs to process all deposits in accordance with the Check Clearing Act for the 21^st Century.
• D)Any check received is to be held until the customer's account has been updated to record the payment.
• E)Accounts payable processing should be given priority over accounts receivable processing.

---

Definitions:

Void Contract

An agreement that is not legally binding and is unenforceable by law, typically because it lacks one or more essential elements of a valid contract.

Incompetent

Lacking the necessary skills, abilities, or legal qualifications to perform a task or to stand trial.

Binding Agreement

A legally enforceable contract that obligates the parties involved to adhere to the terms outlined within the agreement.

Bilateral Contract

A contract involving two parties where each promises to perform an act in exchange for the other's act.