A ﬁnancial manager should be concerned about bank cash and net ﬂoat, which is the sum of:

Question

Quizplus · Accepted Answer

Bank cash and net float include both collection float (the time between when a check is deposited and when it is available for use) and disbursement float (the time between when a check is issued and when the funds are deducted from the account). Book cash refers to the balance in the company's accounting records, which may not necessarily match the actual cash balance in the bank. Disbursement float and bank credit are not components of net float.

A ﬁNancial Manager Should Be Concerned About Bank Cash and Net