Controlled disbursing ________.
A) reduces a firm's average collection period
B) is a popular technique for effectively managing inventory to keep its level low
C) is a popular technique for increasing payment float
D) reduces a firm's average payment period

Question

Quizplus · Accepted Answer

Controlled disbursing is a cash management technique used by companies to increase their payment float, which is the time between when a check is written and when it is actually cleared and funds are withdrawn from the company's account. This technique does not directly affect a firm's collection period, inventory management, or average payment period.

Controlled Disbursing ________