How Would Electronic Funds Transfer Affect the Use of "Float

question 88

Multiple Choice

How would electronic funds transfer affect the use of "float"?

• A) Increase its use somewhat
• B) Decrease its use somewhat
• C) Virtually eliminate its use
• D) Have no effect on its use

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Definitions:

Journal Entry

A record in accounting that represents a transaction where debits and credits are entered, reflecting changes in accounts.

Straight-Line Method

A method of calculating depreciation by evenly allocating the cost of an asset over its useful life.

Semiannual Amortization

The process of periodically reducing the value of a debt or an intangible asset over two times in a year.

Issuing Corporation

A company that has issued securities through an initial public offering (IPO) and has its shares bought and sold by investors.