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:

Economic Relationships

The interactions and connections between individuals, institutions, and countries regarding the production, distribution, and consumption of goods and services.

Alienation

A state of estrangement or disconnection from others, one's work, or oneself, often resulting in feelings of isolation or disempowerment.

Ritualize

The act of infusing actions or practices with customary or routine significance, often turning them into formal rites or ceremonies.

Emotional Connections

refer to feelings of closeness and personal attachment that form between individuals, based on shared experiences, values, or interests.