Collections Float Tends to Offset Disbursement Float

question 119

True/False

Collections float tends to offset disbursement float.If a firm's average collections float exceeds its average disbursement float,then it is said to be operating with positive net float.

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Definitions:

Grading

The process of evaluating the quality or size of products like agricultural commodities, based on a set of standards.

Facilitating Function

Functions that ease the process of market transactions by dealing with logistic aspects like distribution and financing.

Southern Pine Lumber

A type of softwood that is widely used in construction and manufacturing, known for its strength and durability.

Indirect Channel

A distribution pathway that involves intermediaries such as wholesalers or retailers to reach the consumer, as opposed to direct sales from producer to consumer.