Collection float increases book balances but does not immediately change available balances.

Question

Quizplus · Accepted Answer

Collection float refers to the time gap between when a check is deposited into a bank account and when the amount is credited to the available balance. During this period, the book balance may reflect the deposit, but the available balance won't increase until the check clears and the funds are actually available for use.

Collection Float Increases Book Balances but Does Not Immediately Change