Which of the following does NOT reduce the length of time of collection float for a firm?
A)Direct payment via online checking
B)The firm paying suppliers with a credit card
C)Lockboxes
D)Electronic fund transfers (EFT)

Question

Quizplus · Accepted Answer

While direct payment via online checking, lockboxes, and electronic fund transfers (EFT) all offer immediate payment, paying suppliers with a credit card actually increases the length of time for collection float as the credit card company typically takes a few days to process the payment and may charge a fee for the transaction.

Which of the Following Does NOT Reduce the Length of Time