Disbursement ﬂoat is deﬁned as the:

Question

Quizplus · Accepted Answer

Disbursement float refers to the time between when an account holder writes a cheque and when the cheque clears the account. It is the time period between when a cheque is issued and when it is finally presented for payment. It is caused by the delay between the time of payment, when the cheque is written and mailed, and the time when the recipient actually receives and deposits the cheque in their account. This delay creates a difference between the bank's balance and the book balance due to outstanding cheques. Therefore, option C is the correct choice.

Disbursement ﬂOat Is Deﬁned as The