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Question 1 of 10
1. Question
Delays caused by the beneficiary in processing the payment instrument before depositing it into the banking system refers to which category of cash management float?
Correct
1. Transit float (also known as mail or postal float): The time taken from origination of the payment until the time the beneficiary receives it.
2. Processing float: Delays caused by the beneficiary in processing the payment instrument before depositing it into the banking system.
3. Clearing float (sometimes referred to as bank or availability float): The time it takes for the banking system to clear and settle the payment.Incorrect
1. Transit float (also known as mail or postal float): The time taken from origination of the payment until the time the beneficiary receives it.
2. Processing float: Delays caused by the beneficiary in processing the payment instrument before depositing it into the banking system.
3. Clearing float (sometimes referred to as bank or availability float): The time it takes for the banking system to clear and settle the payment. -
Question 2 of 10
2. Question
Funding Management is mainly related to:
Correct
Funding management
This relates to the management of core borrowing facilities and long‐term debt (i.e. with a maturity in excess of one year). Debt may be a simple term loan, or a more sophisticated instrument, such as a bond issue or redeemable debentures. Debt under one year is usually considered a cash management function.Incorrect
Funding management
This relates to the management of core borrowing facilities and long‐term debt (i.e. with a maturity in excess of one year). Debt may be a simple term loan, or a more sophisticated instrument, such as a bond issue or redeemable debentures. Debt under one year is usually considered a cash management function. -
Question 3 of 10
3. Question
Which statement is related to a production float?
Correct
The time between receiving the order and dispatching the goods, therefore, can vary quite considerably, depending on the circumstances. This is known as ‘production float’.
Incorrect
The time between receiving the order and dispatching the goods, therefore, can vary quite considerably, depending on the circumstances. This is known as ‘production float’.
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Question 4 of 10
4. Question
Most companies will not pay before receiving and accepting a formal request for payment in the form of:
Correct
Most companies will not pay before receiving and accepting a formal request for payment in the form of an invoice or statement
Incorrect
Most companies will not pay before receiving and accepting a formal request for payment in the form of an invoice or statement
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Question 5 of 10
5. Question
Identify TWO efficient invoicing methods in the e‐commerce environment:
Correct
In the e‐commerce environment, there are new, more , such as paid‐on‐production (POP) and evaluated receipts settlement (ERS).
Incorrect
In the e‐commerce environment, there are new, more , such as paid‐on‐production (POP) and evaluated receipts settlement (ERS).
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Question 6 of 10
6. Question
Which statement best describes a credit period among them?
Correct
The delay between the issue of an invoice and the payment due date is the ‘credit period’.
Incorrect
The delay between the issue of an invoice and the payment due date is the ‘credit period’.
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Question 7 of 10
7. Question
One way to speed up receipt of payment, other than to shorten the credit period, is to offer:
Correct
One way to speed up receipt of payment, other than to shorten the credit period, is to offer a discount for early payment
Incorrect
One way to speed up receipt of payment, other than to shorten the credit period, is to offer a discount for early payment
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Question 8 of 10
8. Question
‘Clearing float’ relates to the period an item takes to clear once it enters:
Correct
‘Clearing float’ relates to the period an item takes to clear once it enters the banking system.
Incorrect
‘Clearing float’ relates to the period an item takes to clear once it enters the banking system.
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Question 9 of 10
9. Question
What happens if the funds are available but there is a delay in informing the supplier, or the funds are not in a location where the supplier can use them?
Correct
If the funds are available but there is a delay in informing the supplier, or the funds are not in a location where the supplier can use them, further float occurs.
Incorrect
If the funds are available but there is a delay in informing the supplier, or the funds are not in a location where the supplier can use them, further float occurs.
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Question 10 of 10
10. Question
Once the funds are moved to the concentration account, the supplier still cannot use them until he is advised of their receipt. This is known as:
Correct
Once the funds are moved to the concentration account, the supplier still cannot use them until he is advised of their receipt. This is known as ‘information float’.
Incorrect
Once the funds are moved to the concentration account, the supplier still cannot use them until he is advised of their receipt. This is known as ‘information float’.