Which of the following statements regarding float is MOST true? A. A net disbursement float is generally...

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Finance

Which of the following statements regarding float is MOSTtrue?
A. A net disbursement float is generally preferred over a netcollection float.
B. To maximize the potential benefits of net float, firms shouldpay bills electronically, but request that customers pay bycheque.
C. A disadvantage of a disbursement float is that less bankfunds are available to earn interest.
D. If Company A writes cheques to Company B, with an averageprocessing delay of 10 days, this transaction would increaseCompany B's disbursement float, but decrease company A's collectionfloat.

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The most correct or true statement among the four statements is option a A company prefers net disbursement float over a net collection float The term float refers to the time gap that exists in the processing of the financial See Answer

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Which of the following statements regarding float is MOSTtrue?A. A net disbursement float is generally preferred over a netcollection float.B. To maximize the potential benefits of net float, firms shouldpay bills electronically, but request that customers pay bycheque.C. A disadvantage of a disbursement float is that less bankfunds are available to earn interest.D. If Company A writes cheques to Company B, with an averageprocessing delay of 10 days, this transaction would increaseCompany B's disbursement float, but decrease company A's collectionfloat.