The entire process resulting from a check issue and mail by the payer company to the payee company (i.e., mail float, processing float, and clearing float) is disbursement float to the payer company and is collection float to the payee company.

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Quizplus · Accepted Answer

Disbursement float refers to the time between the initiation of payment by the payer company and the actual outflow of funds, while collection float refers to the time between receipt of payment by the payee company and the actual deposit of funds. Therefore, the entire process resulting from a check issue and mail by the payer company to the payee company is disbursement float to the payer company and is collection float to the payee company.

The Entire Process Resulting from a Check Issue and Mail