Collection float increase book cash and:

Question

Quizplus · Accepted Answer

When a collection float increases, it means that the money owed to the company has been received and deposited into the bank account. This increases the bank's cash balance. Option A is incorrect because disbursement float is unrelated to collection float. Option B is incorrect because increasing collection float does not decrease bank cash. Option D is incorrect because increasing collection float does not offset net float.

Collection Float Increase Book Cash And