For a firm that makes heavy use of net float, being able to forecast collections and disbursement check clearings is essential.

Question

Quizplus · Accepted Answer

Net float is the difference between the amount of time it takes for a company to collect a payment and the amount of time it takes for the payment to clear. For a firm that relies on net float, accurately forecasting collections and disbursement check clearings is crucial in planning their cash flow and managing their working capital. Therefore, the statement is true.

For a Firm That Makes Heavy Use of Net Float