If a firm has an average daily, remittance of $4,000,000 and 1.5 days in the collection process may be saved through a lockbox system, has the firm freed up any real funds for other investment

Exam Question

If a firm has an average daily, remittance of $4,000,000 and 1.5 days in the collection process may be saved through a lockbox system, has the firm freed up any real funds for other investment

• 1) No, these funds are theoretical in nature only
• 2) Yes, approximately $2,666,667 has been freed up
• 3) Yes, approximately $6,000,000 has been freed up
• 4) Cannot be determined from information provided

Practice set and Exam Quiz

Yes! You can do Online MCQ practice of Financial Management question set and give online exam quiz test for Financial Management, so you can check your knowledge. You can get MCQ Study and Exam link from home page.