Which of the following statements about cash management systems is correct?

Question

A. A lockbox system generally is used to effectively manage a firm's collections through concentration banking arrangements.
B. A firm that has many divisions that are widely dispersed geographically will find that centralizing customers' payments is of little benefit.
C. Disbursement float refers to the frequency with which a firm writes checks to pay its creditors.
D. There are few actions a firm can take to improve its synchronization of cash flows.
E. Zero-balance accounts are used to help a firm to manage its cash receipts.

Answer 1

Answer: A