Due to a flood in the Canadian prairies, cheques received by firms in the affected area are not deposited for several days. This represents an increase in the ____________ float for the depositing firm.

Question

Quizplus · Accepted Answer

This scenario represents an increase in the collection float, which is the time between when a cheque is received by a firm and when the funds are available in the firm's account. The delay in depositing cheques due to the flood increases the collection float.

Due to a Flood in the Canadian Prairies, Cheques Received