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41) ________ float results from the delay between the time

Question : 41) ________ float results from the delay between the time : 1415286

 

41) ________ float results from the delay between the time when a customer deducts a payment from the checking account ledger and the time when the vendor actually receives the funds in a spendable form.

A) Mail

B) Processing

C) Collection

D) Disbursement

42) Which of the following is true of collection float?

A) It represents the time delay between when payment is placed in the mail and when it is received.

B) It represents the time between receipt of a payment and its deposit into a firm's account.

C) It results from the lapse between the time when a firm deducts a payment from its checking account ledger and the time when funds are actually withdrawn from its account.

D) It results from the delay between the time when a customer deducts a payment from the checking account ledger and the time when the vendor actually receives the funds in a spendable form.

43) A customer sends payment to a post office box which is emptied by a firm's bank daily. The bank then processes the payments and notifies the firm of the day's collections. This collection technique is known as ________.

A) a direct send

B) concentration banking

C) the lockbox system

D) controlled disbursing

44) Controlled disbursing ________.

A) reduces a firm's average collection period

B) is a popular technique for effectively managing inventory to keep its level low

C) is a popular technique for increasing payment float

D) reduces a firm's average payment period

45) ________ float results from the lapse between the time when a firm deducts a payment from its checking account ledger and the time when funds are actually withdrawn from its account.

A) Mail

B) Processing

C) Collection

D) Disbursement

46) ________ involves the strategic use of mailing points and bank accounts to lengthen mail and clearing floats.

A) A direct send

B) Concentration banking

C) A lockbox

D) Controlled disbursing

47) A ________ is an unsigned check drawn on one of a firm's bank accounts and deposited into its account at another bank.

A) direct send

B) wire transfer

C) depository transfer check

D) preauthorized check

48) A ________ is a telegraphic communication that, via bookkeeping entries, removes funds from the payer's bank and deposits them in an account of the payee's bank.

A) direct send

B) wire transfer

C) depository transfer check

D) preauthorized check

49) ________ are short-term money market instruments that can be easily converted into cash.

A) Preferred stocks

B) Treasury bonds

C) Accounts receivable

D) Marketable securities

50) To be truly marketable, a security must ________.

A) be highly rated by a credit rating agency

B) have the characteristics of a callable bond

C) be readily convertible into cash

D) have a maturity of 10 years or more

 

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