Which of the Following Statements Is Correct

question 47

Multiple Choice

Which of the following statements is correct?

• A)Poor synchronization of cash flows which results in high cash management costs can be partially offset by increasing disbursement float and decreasing collections float.
• B)The size of a firm's net float is primarily a function of its natural cash flow synchronization and how it clears its checks.
• C)Lockbox systems are used mainly for security purposes as well as to decrease the firm's net float.
• D)If a firm can speed up its collections and slow down its disbursements, it will be able to reduce its net float.
• E)A firm practicing good cash management and making use of positive net float will bring its check book balance as close to zero as possible, but must never generate a negative book balance.

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Definitions:

DSM-IV

Diagnostic and Statistical Manual of Mental Disorders, Fourth Edition, a manual published by the American Psychiatric Association that outlines mental disorders' diagnostic criteria.

Prevention

Prevention involves measures or actions taken to stop something undesirable from occurring, such as diseases or accidents.

Psychological Disorders

Mental health conditions characterized by disruptions in thinking, feeling, mood, and behavior, which impede daily functioning.

Treatment

The management and care of a patient for the purpose of combating a disease or disorder.