Question

In: Finance

Which statement is correct? Select one: A. Firms prefer to increase processing delay on disbursements. B....

Which statement is correct?

Select one:

A. Firms prefer to increase processing delay on disbursements.

B. Firms prefer to eliminate all types of float.

C. The Check Clearing Act for the 21st Century is designed to reduce total collection time to one day.

D. Firms cannot use lockboxes if they use cash concentration accounts.

E. Firms open regional offices so their employees can pick up lockbox payments throughout the day.

Expert Solution

Correct option: A. Firms prefer to increase processing delay on disbursements.

Reason: An increase in the accounts payable period will decrease the cash cycle.

Option B is not correct . Firms prefer to eliminate all types of float

Disbursement float causes the available balance to exceed the ledger balance.

Option C is not correct. The Check Clearing Act for the 21st Century is designed to reduce total collection time to one day.

The Check Clearing for the 21st Century Act facilitates the use of technology to reduce or eliminate the costs involved with paper check processing

Option D is not correct.

A lockbox is a bank-operated mailing address to which a company directs its customers to send their payments.Cash Concentration allows to centralize your cash from multiple accounts and banks into a combined account, enabling greater oversight and visibility into the cash position. So firms can use lockboxes with cash concentration solution.

-----------------------------------

# Please upvote if the solution helps.

# For feedback- Please use the comments section in case of any concern/clarifications.

jeff jeffy answered 1 year ago

Which of the following statement is correct? Select one: a. Firms in labor-intensive industries with enormous...

Which of the following statement is correct? Select one: a. Firms in labor-intensive industries with enormous production economies of scale may be forced to sell overseas in order to spread their overhead over a larger quantity of sales. b. The unit cost reduction through high volume production is called the economies of scale. c. All the answers are incorrect. d. The multinational financial system enables companies to avoid exchange rate risk. e. The distinguishing characteristic of the multinational corporation (MNC)...

Which of the following statements is correct? Select one: a. An increase in government spending in...

Which of the following statements is correct? Select one: a. An increase in government spending in a small open economy causes currency depreciation b. An increase in domestic taxes in a small open economy causes a decrease in the real interest rate c. An increase in taxes in a small open economy causes currency depreciation d. An increase in domestic physical capital in a small open economy causes an increase in the real interest rate.

Which of the following statement is correct? Select one: a. Cultural risk is the risk that...

Which of the following statement is correct? Select one: a. Cultural risk is the risk that foreigners doing business in another country will fail to adapt to cultural differences, and this failure will affect the MNC’s success. b. All the answers are incorrect. c. The firm using the hedging instruments such as a forward, futures, or swap contract magnifies the foreign exchange risk. d. Mexican tourists tend to come to the United States in smaller numbers when the dollar is...

Which of the following statements is (are) correct? Select one: A. A strong demand increase together...

Which of the following statements is (are) correct? Select one: A. A strong demand increase together with a weaker supply decrease would necessarily result in a higher price and an increase in equilibrium quantity. B. A weak demand decrease together with a stronger supply increase would necessarily result in a lower price and an increase in equilibrium quantity. C. A weak demand increase together with a stronger supply increase would necessarily result in a lower price and an increase in...

Which of the following statement is correct? Select one: a. Cat bonds are also known as...

Which of the following statement is correct? Select one: a. Cat bonds are also known as "catastrophe-linked bonds." b. A typical HO-3 type of homeowners’ insurance policy never provides coverage for “other structures” of a house based on the percentage of the dwelling such as it is stated as “10 percent of dwelling coverage.” c. All the answers are incorrect. d. Since the losses tend not to be correlated across policyholders, homeowners’ insurance policies commonly include coverage for earthquake and...

47. Which of the following statements are correct? Select which option is correct. Select one or...

47. Which of the following statements are correct? Select which option is correct. Select one or more: The level of professional skepticism can be reduced where the auditor has past experience with the entity indicating the honesty and integrity of management. The level of professional skepticism needs to be maintained throughout the whole engagement. Professional skepticism implies an expectation of fraud or error, so is a biased viewpoint. Professional skepticism is not important in considering management's explanations for unusual trends...

Which statement is correct? Select one: a. When MR = P, the average cost curve is...

Which statement is correct? Select one: a. When MR = P, the average cost curve is at its minimum point. b. When MR = MC, the average cost curve is at its minimum point. c. When the marginal cost curve is below the average cost curve, the average cost curve must be rising. d. When the marginal cost curve is above the average cost curve, the average cost curve must be rising.

Which of the following statement is correct? Select one: a) Adding less water than required in...

Which of the following statement is correct? Select one: a) Adding less water than required in concrete results in higher workability b) Adding more water than required in concrete results in higher compressive strength c) Adding more water than required in concrete results in more voids and higher porosity

Which statement is not correct about internal force? Select one: a. Internal forces describe the stress...

Which statement is not correct about internal force? Select one: a. Internal forces describe the stress and strain inside a body, whereas external forces are applied onto the body by its surroundings. b. Shear force acts in the axial direction of a beam and tends to make the beam grow shorter or longer. c. Bending moment is a reaction produced by the inside of a beam when forces are applied to make it bend. d. There are three types of...

Which of the following is correct? Select one: a. Qualitative data is generally non-numerical information b....

Which of the following is correct? Select one: a. Qualitative data is generally non-numerical information b. Information can only be extracted from external sources c. Operational information gives details of long-term plans only W. Ltd makes leather purses. It has drawn up the following budget for its next financial period: Selling price per unit $11.60 Variable production cost per unit $3.40 Sales Commission $5% of selling price Fixed production costs $430,500 Fixed selling and administration cost $198,150 Sales 90,000...