Checks written by the firm are said to generate:

Question

Quizplus · Accepted Answer

Checks written by the firm, such as payroll or vendor payments, generate disbursement float. This is the time between when the check is written and when the funds are withdrawn from the firm's account, during which the firm can earn interest on the funds. Collection float refers to the time between when a check is deposited and when the funds become available, while ledger float and book float are not commonly used terms in finance.

Checks Written by the Firm Are Said to Generate