All of the following are false EXCEPT
A) the mail float is caused by the time lapse from the moment a firm receives the check and begins to process it.
B) the processing float is caused by the time necessary for a bank to process the check.
C) the transit float is caused by the time lapse from the moment a customer mails a check until the firm begins to process it.
D) the disbursing float derives from the fact that funds remain in a firm's bank account until its payment check is cleared through the banking system.

Question

Quizplus · Accepted Answer

The disbursing float refers to the time during which funds remain in a firm's bank account until the payment check is cleared through the banking system. This is the correct definition, making it the true statement among the options. The other options incorrectly define mail float, processing float, and transit float.

All of the Following Are False EXCEPT