A company gains as a result of payment float and loses as a result of availability float.

Question

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Payment float refers to the time that elapses between when a payment is made by a company and when the payment is received by the recipient. During this time, the company retains the use of the funds, resulting in a financial gain. Availability float, on the other hand, refers to the time it takes for a company to access funds after a payment has been made, resulting in a financial loss. Therefore, the statement is true.

A Company Gains as a Result of Payment Float and Loses