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

question 57

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 Century.
• D) Any check received is to be held until the customer's account has been updated to record the payment.
• E) Accounts payables processing should be given priority over accounts receivables processing.

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Definitions:

Ending Inventory

The overall value of products for sale at the close of a fiscal period.

Cost of Goods Sold

Directly associated expenditures for producing the goods a business sells, including the cost of materials and labor.

Average Total Asset

A measure used to calculate the average value of a company's assets over a specific period, often used in profitability and efficiency ratios.

Beginning Total Assets

The total value of all assets owned by an entity at the start of a fiscal period, critical for financial analysis and performance tracking.