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_______________ is/are not a method of speeding up collections of cash. All of the options are...

Question:

_______________ is/are not a method of speeding up collections of cash. All of the options are methods for speeding up collections.

a. Regional collection centers.

b. Lock-box system.

c. Extended disbursement float.

Disbursement Float:

The disbursement float is money that has been spent, that has not yet been taken out of the bank account. For example, the time it takes for a check payment to clear is referred to as a disbursement float.

Answer and Explanation:

The answer is: c. Extended disbursement float. Extended disbursement float is helpful for companies that are trying to slow the collections process to...

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Cash Collection & Concentration: Definition & Components

from Finance 101: Principles of Finance

Chapter 18 / Lesson 3
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