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

Question

Quizplus · Accepted Answer

While direct payment via online checking, lockboxes, and electronic fund transfers (ETF) can all reduce collection float by speeding up the payment process, paying suppliers with a credit card does not necessarily reduce collection float as it is essentially just a form of deferred payment.

Which of the Following Does NOT Reduce the Length of Time