Which of the following best describes the availability float?
A)how long it takes the firm to process the cheque and deposit it in the bank
B)how long it takes before the bank gives the firm credit for the funds
C)how long it takes before payments to suppliers actually result in a cash outflow for the firm
D)how long it takes for a firm to be able to use funds after a customer has paid for its goods
E)how long it takes before payments to suppliers actually result in cash outflow for the firm

Question

Quizplus · Accepted Answer

Availability float refers to the period between when a check is deposited into a bank account and when the bank gives the account holder credit for the funds.

Which of the Following Best Describes the Availability Float