Stewart's Office Supply Has Revised Its Office Procedures Such That

question 60

Multiple Choice

Stewart's Office Supply has revised its office procedures such that it now takes 1 day to prepare the daily deposit, rather than 2 days. Accounts payables are processed in 5 days, rather than the previous 4 days, so that shipping and receiving can better verify the charges before the checks are written. How will these revised procedures affect the firm's float?

• A) Increase the disbursement float by 1 day
• B) Decrease the collection float by 1 day
• C) Decrease the net float by 2 days
• D) Increase the net float by 2 days
• E) No effect on the firm's float

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Definitions:

Hawthorne Studies

A series of studies conducted in the early 20th century focusing on worker productivity, leading to insights on the importance of social relations and worker attention.

Compensation

Payment or benefits provided to employees in exchange for their labor or services.

Hawthorne Studies

A series of experiments conducted to examine how different conditions affect worker productivity, highlighting the importance of social relations and worker satisfaction.

McGregor's Theory

A concept of human motivation, management, and leadership that divides workers' motivations into two categories, Theory X and Theory Y.