Which of the Following Is Not True of Float Management

question 42

Multiple Choice

Which of the following is not true of float management?

• A)Float management involves controlling the collection and disbursement of cash.
• B)An objective of float management is to speed up the collection float.
• C)An objective of float management is to slow down disbursement float.
• D)Float management will succeed if the firm can collect late and pay early.
• E)All of the above are true of float management.

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Definitions:

Extraction Cost

The expenses associated with the removal of resources or raw materials from the earth, such as mining, drilling, or quarrying.

Quantity of Gold Bars

The quantity of gold bars represents the physical amount of gold, measured in bars, that an entity possesses or trades.

User Cost

The cost of using a good or service, including the cost of foregone opportunities.

Nonrenewable Resource

A natural resource that cannot be replenished at a rate to match its consumption, such as fossil fuels or minerals.