A company trying to optimize the use of float will try to
A) increase its disbursing float.
B) decrease its disbursing float.
C) decrease processing float.
D) Both A and C

Question

Quizplus · Accepted Answer

To optimize the use of float, a company will try to both increase its disbursing float (by delaying payments as much as possible) and decrease processing float (by streamlining and speeding up internal processing procedures). By doing so, the company can maximize the amount of time it has access to funds without having to pay out any money, which can provide a significant financial advantage.

A Company Trying to Optimize the Use of Float Will