________ refers to funds that have been dispatched by a payer but are not in a form that can be spent by the payee.
A) Banker's acceptance
B) Float
C) A direct send
D) Lockbox

Question

Quizplus · Accepted Answer

Float refers to the time gap between when a payment is made by the payer and when the payee can actually access and use the funds. This could include checks that have been written but not yet cashed, electronic transfers that are pending, or other forms of payment processing that are still underway. Float can affect a company's cash flow and liquidity, and it is important to manage it effectively in order to optimize financial performance. Banker's acceptance (A) refers to a financial instrument that is issued by a bank and represents a guarantee of payment for a future date. A direct send (C) is not a common financial term, and it is unclear what it would refer to in this context. A lockbox (D) is a service provided by banks that allows companies to direct their customer payments to a central address, where they are collected and deposited into the company's account.

________ Refers to Funds That Have Been Dispatched by a Payer