On an average day, a company writes cheques totaling €1,500.These cheques take 7 days to clear. The company receives cheques totaling €1,800.These cheques take 4 days to clear.The cost of
Debt is 9%.
What is the ﬁrm's disbursement ﬂoat?

Question

Quizplus · Accepted Answer

Disbursement float refers to the amount of money being processed through cheques that have been issued but not yet cleared. For this company, the disbursement float is calculated by multiplying the average daily amount of cheques written (€1,500) by the number of days it takes for these cheques to clear (7 days), which equals €10,500.

On an Average Day, a Company Writes Cheques Totaling €1,500