The time between when a payee sends payment and the funds are credited to the payee's bank account is called the:
A) collection float
B) disbursement float
C) total float
D) transmittal float

Question

Quizplus · Accepted Answer

Collection float is the time between when a payee sends payment and the funds are credited to the payee's bank account. Disbursement float is the time between when a payer initiates a payment and when the funds are debited from their account. Total float is the sum of both collection and disbursement float. Transmittal float refers to the time it takes for financial information or documents to be transmitted between parties. Therefore, the most appropriate choice is A) collection float.

The Time Between When a Payee Sends Payment and the Funds