Collection Float

question 7

Multiple Choice

Collection float:

• A)is more desirable to firms than disbursement float.
• B)is totally eliminated by the installation of a lockbox system.
• C)exists when a firm's available balance exceeds its book balance.
• D)can be avoided by collecting payments electronically at the time of sale.
• E)is eliminated by implementing a concentration banking system.

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Definitions:

Cognitive Development

The process involving the development of thinking and reasoning skills, including perception, memory, conception, judgment, and imagination, from infancy through adulthood.

Early Childhood

A period in human growth and development that spans from birth to eight years old.

Preoperational Intelligence

A stage in Piaget’s theory of cognitive development, typically from ages 2 to 7, where children begin to engage in symbolic play and learn to manipulate symbols but do not yet understand concrete logic.

Logical Operations

Mental processes involved in reasoning and understanding logical relationships among concepts or practices.