17. A firm has taken steps to reduce the time to process the checks received fro

Question

17. A firm has taken steps to reduce the time to process the checks received from its customers from 4 days to 2. Additionally, the firm has switched banks, as its prior bank made funds available for withdrawal 2 days after deposit, while the new bank makes deposits available after only 1 day. All else the same, these steps should the firm's float. A) increase: net B) increase: collection D) decrease; disbursement E) not change: net C) decrease; net 18. The amount of time it takes for a check (or electronic) deposit to clear through the banking system is called A) Mail delay. B) Processing delay.C) Total float. D) Availability delay. E) Collection Float tdanlated every 15

Explanation / Answer

Ans.17) D- Disbursement, The delay in time between the disbursement of a check to its clearing through the bank system. The float is reflected as are duction in the cash ledger, but remains as part of the balance in the companies checking account.

Ans.18) E- collection float, A deposit into a bank account that has not yet cleared.

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