Which of the following best describes the collection float?
A) how long it takes the firm to receive the check after the customer has mailed it
B) how long it takes the firm to process the check 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

Question

Quizplus · Accepted Answer

Collection float refers to the time period between when a customer pays for goods and when the firm can actually use those funds.

Which of the Following Best Describes the Collection Float