Determining the probability that potential customers

Assignment Help Financial Management

Reference no: EM132044642

1. The Check Clearing Act for the 21st Century has caused:

zero-balance accounts to disappear.

the elimination of all lockboxes.

a reduction in both collection and disbursement float.

increased check kiting.

2. Which statement is correct?

Firms prefer to increase processing delay on disbursements.

Firms prefer to eliminate all types of float.

Firms cannot use lockboxes if they use cash concentration accounts.

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

3. The process of determining the probability that potential customers will not pay is called:

account aging.

credit analysis.

credit terms.

collection policy.

Reference no: EM132044642

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