The Entire Process Resulting from a Check Issue and Mail

question 23

True/False

The entire process resulting from a check issue and mail by the payer company to the payee company (i.e., mail float, processing float, and clearing float) is disbursement float to the payer company and is collection float to the payee company.

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Definitions:

Additional Funds Needed (AFN)

The projected amount of external financing a company will need to support its growth.

Statement of Cash Flows

A financial statement that shows how changes in balance sheet accounts and income affect cash and cash equivalents, breaking the analysis down to operating, investing, and financing activities.

Inventory Forecast

The process of estimating the amount of inventory a company will need over a future period based on historical sales data, seasonality, and market trends.

Regression Line

A statistical method used to describe the relationship between a dependent variable and one or more independent variables, usually represented as a straight line on a graph.