Which One of the Following Related to Float Management Is

question 48

Multiple Choice

Which one of the following related to float management is true?

• A)Float management is the practice of speeding up the disbursement of cash.
• B)An objective of float management is the elimination of disbursement float.
• C)An objective of float management is to reduce float by reducing sales.
• D)Firms prefer net disbursement float over net collection float.
• E)Float management is no longer needed.

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Definitions:

Residual Value

Residual value is the estimated value of a fixed asset at the end of its useful life, reflecting what it can be sold for or its salvage value.

Financial Reporting

The process of producing statements that disclose an organization's financial status to management, investors, and government entities.

GAAP

Generally Accepted Accounting Principles (GAAP) are a set of rules and standards used in the United States for financial reporting, providing guidelines on how financial statements should be prepared and disclosed.

IRS

The Internal Revenue Service, a U.S. government agency responsible for tax collection and enforcement of tax laws.