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Question 1 of 10
1. Question
Which statement best describes a Transit Float?
Correct
Transit float (also known as mail or postal float): The time taken from origination of the payment until the time the beneficiary receives it.
Incorrect
Transit float (also known as mail or postal float): The time taken from origination of the payment until the time the beneficiary receives it.
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Question 2 of 10
2. Question
Once the goods have been dispatched, an invoice needs to be sent to request:
Correct
Once the goods have been dispatched, an invoice needs to be sent to request payment.
Incorrect
Once the goods have been dispatched, an invoice needs to be sent to request payment.
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Question 3 of 10
3. Question
The delay between dispatch of goods and invoice production is totally under the control of the:
Correct
The delay between dispatch of goods and invoice production is totally under the control of the supplying company.
Incorrect
The delay between dispatch of goods and invoice production is totally under the control of the supplying company.
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Question 4 of 10
4. Question
Paid‐on‐production (POP) and evaluated receipts settlement (ERS) are the new & efficient methods used for:
Correct
In the e‐commerce environment, there are new, more efficient invoicing methods, such as paid‐on‐production (POP) and evaluated receipts settlement (ERS).
Incorrect
In the e‐commerce environment, there are new, more efficient invoicing methods, such as paid‐on‐production (POP) and evaluated receipts settlement (ERS).
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Question 5 of 10
5. Question
When does the Credit periods usually start?
Correct
Credit periods usually start from the invoice date, not the dispatch date. The float is incurred as a result of the credit period.
Incorrect
Credit periods usually start from the invoice date, not the dispatch date. The float is incurred as a result of the credit period.
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Question 6 of 10
6. Question
If the payment is made by cheque, what is the approximate mailing time in a country like Greece?
Correct
If the payment is made by cheque, mailing times vary from country to country. In the UK, domestic mail takes a theoretical maximum of two days. In the USA, domestic mail can take up to five days. In countries such as Greece, it can add nine days while in others it may take weeks.
Incorrect
If the payment is made by cheque, mailing times vary from country to country. In the UK, domestic mail takes a theoretical maximum of two days. In the USA, domestic mail can take up to five days. In countries such as Greece, it can add nine days while in others it may take weeks.
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Question 7 of 10
7. Question
In the USA, what is clearing float called if looking at it from the collector’s perspective?
Correct
‘Clearing float’ relates to the period an item takes to clear once it enters the banking system. In the USA, this is called ‘availability float’ if looking at it from the collector’s perspective. In some countries, domestic clearing takes two or three days while in others it might take 14 days or more
Incorrect
‘Clearing float’ relates to the period an item takes to clear once it enters the banking system. In the USA, this is called ‘availability float’ if looking at it from the collector’s perspective. In some countries, domestic clearing takes two or three days while in others it might take 14 days or more
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Question 8 of 10
8. Question
Identify any TWO methods for reducing float:
Correct
There are a number of areas where cash managers can seek to improve and manage float more efficiently.
• Change internal systems
• Invoice immediately on dispatch of goods
• Change customer behaviorIncorrect
There are a number of areas where cash managers can seek to improve and manage float more efficiently.
• Change internal systems
• Invoice immediately on dispatch of goods
• Change customer behavior -
Question 9 of 10
9. Question
Select more than one answer:
Internally liquidity can be found in:Correct
Internally liquidity can be found in:
• pools of cash in the company (if these pools are in different currencies or geographically
dispersed, it may be difficult to use these funds effectively)
• ongoing operations and sales receipts
• selling the company’s liquid assetsIncorrect
Internally liquidity can be found in:
• pools of cash in the company (if these pools are in different currencies or geographically
dispersed, it may be difficult to use these funds effectively)
• ongoing operations and sales receipts
• selling the company’s liquid assets -
Question 10 of 10
10. Question
Which phase is very important for a cash manager, a stage at which a payment cannot be returned without the permission of the beneficiary account holder?
Correct
The finality of payment is the time after which a payment is considered to become irrevocable. This is important to the cash manager because this is the stage at which a payment cannot be returned without the permission of the beneficiary account holder.
Incorrect
The finality of payment is the time after which a payment is considered to become irrevocable. This is important to the cash manager because this is the stage at which a payment cannot be returned without the permission of the beneficiary account holder.