All of the following are false except:
A) the mail float is caused by the time lapse from the moment a firm receives the check and begins to process it.
B) the processing float is caused by the time necessary for a bank to process the check.
C) the transit float is caused by the time lapse from the moment a customer mails a check until the firm begins to process it.
D) the disbursing float derives from the fact that funds remain in a firm's bank account until its payment check is cleared through the banking system.

Question

Quizplus · Accepted Answer

The disbursing float is correctly described as the time during which funds remain in a firm's bank account until the payment check is cleared through the banking system.

All of the Following Are False Except