The time between when a payee sends payment and the funds are credited to the payeer's bank account is called the:
A)collection float
B)disbursement float
C)total float
D)transmittal float

Question

Quizplus · Accepted Answer

Collection float refers to the time between when a payee sends payment and when the funds are credited to the payee's account. Disbursement float refers to the time between when a payer initiates payment and when the funds are debited from their account. Total float is the combination of collection float and disbursement float. Transmittal float is not a commonly used term in accounting or finance.

The Time Between When a Payee Sends Payment and the Funds