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CTP · Question #333
CTP Question #333: Real Exam Question with Answer & Explanation
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Question
- (Topic 4) During a company's cash flow analysis review it discovers that for every 10 new customers it gains, there is an increase of 2% in its float costs associated with the payment methods it offers. If the company pursues faster collection methods for payments, resulting in greater availability of surplus cash with a correlating decrease in the need to issue commercial paper, what risk will the company mitigate?
Options
- ASettlement
- BDisbursement
- CLiquidity
- DFloat
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