Which of the following best describes the collection float?
A)how long it takes the firm to receive the cheque after the customer has mailed it
B)how long it takes the firm to process the cheque and deposit it in the bank
C)how long it takes before the bank gives the firm credit for the funds
D)how long it takes for a firm to be able to use funds after a customer has paid for its goods
E)how long it takes before payments to suppliers actually result in cash outflow for the firm

Question

Quizplus · Accepted Answer

The collection float is the time it takes for a firm to be able to use funds after a customer has paid for its goods.

Which of the Following Best Describes the Collection Float