Float Is Important in the Cash Conversion Cycle of a Firm

question 233

Multiple Choice

Float is important in the cash conversion cycle of a firm because ________.

• A) its presence reduces a firm's average collection period
• B) its presence reduces a firm's average payment period
• C) its presence lengthens both a firm's average collection period and its average payment period
• D) its presence reduces the investment that a firm must make in its cash conversion cycle

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Definitions:

Delegated Powers

Powers that are explicitly given by the Constitution to the federal government or its branches, allowing it to perform its duties.

Constitution

Core principles or established precedents that form the basis of governance for a state or any organization.

Congress

The national legislative body of a country, typically consisting of two houses: the Senate and the House of Representatives in the United States.

Pocket Veto

A legislative maneuver by which a president or governor may indirectly veto a bill by taking no action on it, and if Congress adjourns during the time allowed for the bill's signing, the bill dies.