The period of time between the issuance of a cheque by a firm and the deduction of the amount of the cheque from the firm's bank account creates the:

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The disbursement float refers to the time gap between when a cheque is issued by a firm and when the amount is actually deducted from the firm's bank account. This period allows the firm's account to show a higher balance than is actually available for use, due to the processing time required for the cheque to clear.

The Period of Time Between the Issuance of a Cheque