A financial manager should be concerned about bank cash and net float,which is the sum of:

Question

Quizplus · Accepted Answer

Net float is the sum of collection float (the time between when a check is deposited and when the funds become available in the account) and disbursement float (the time between when a check is written and when the funds are taken out of the account). Therefore, the correct choice is B, which lists both collection float and disbursement float. The other choices include unrelated items that are not part of net float calculation.

A Financial Manager Should Be Concerned About Bank Cash and Net