Taylor's Market received five checks today and went to the bank to deposit all of them.Unfortunately, the bank was closed for the day due to a robbery.How does the bank closure affect the firm's float assuming these five checks are the only outstanding bank items?
A)Collection float increased
B)Collection float decreased
C)Disbursement float increased
D)Disbursement float decreased
E)Net float remained unchanged

Question

Quizplus · Accepted Answer

The collection float increased because the checks could not be deposited, delaying the firm's ability to collect funds.

Taylor's Market Received Five Checks Today and Went to the Bank