Which of the Following Statements Is Correct

question 101

Multiple Choice

Which of the following statements is correct?

• A) A lockbox system is an example of concentration banking.
• B) For a firm that has many divisions or plants operating over a wide geographic area,payables centralization offers little benefit.
• C) If a firm increases its disbursement float,its net float will also increase,other things held constant.
• D) There are no actions a firm can take to improve its synchronization of cash flows.
• E) A lockbox system does not affect collections float.

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Definitions:

Analogy

An examination of two entities to delineate their differences or emphasize their similarities, aimed at providing a clearer understanding.

Peanuts

Edible legumes or seeds enclosed in a hard shell, often consumed as a snack, used in cooking, or processed for oil.

Protein

Organic molecules made up of amino acids that are essential for many processes in living organisms, including catalysis of metabolic reactions and DNA replication.

Generalization

The process of formulating general concepts by abstracting common properties of specific instances, thus allowing for broader applications or interpretations.