Stewart\'s Office Supply has revised its office procedures such that it now take
ID: 2654218 • Letter: S
Question
Stewart's Office Supply has revised its office procedures such that it now takes one day to prepare the daily deposit, rather than two days. Accounts payable are processed in five days, rather than the previous four days, so that shipping and receiving can better verify the charges before the checks are written. How will these revised procedures affect the firm's float?
Increase the disbursement float by one day
Decrease the collection float by one day
Decrease the net float by two days
Increase the net float by two days
There will be no effect on the firm's float
Increase the disbursement float by one day
Decrease the collection float by one day
Decrease the net float by two days
Increase the net float by two days
There will be no effect on the firm's float
Explanation / Answer
There will be no effect on the firms float.
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