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CTP · Question #514

(Topic 6) Under which of the following circumstances is lengthening the disbursement mail float NOT a benefit to the disbursing company?

The correct answer is B. Vendors view a substantial delay as a late payment. See the full explanation below for the reasoning.

Question

  • (Topic 6)

Under which of the following circumstances is lengthening the disbursement mail float NOT a benefit to the disbursing company?

Options

  • AInterest rates are high.
  • BVendors view a substantial delay as a late payment.
  • CClearing float is reduced only slightly.
  • DThe lengthened mail float exceeds standard clearing times.

How the community answered

(60 responses)
  • A
    3% (2)
  • B
    75% (45)
  • C
    15% (9)
  • D
    7% (4)

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