A firm's collection float is defined as O Items held as a substitute for cash balances and as a temporary investment O The time it takes to deposit checks that have been received by the firm, and for the bank to process the checks and to credit the company's account balance with "good funds." O The amount of funds tied up in checks that have been written to pay Accounts Payable but which are still in process and have not yet been deducated from the checking account balance by the bank.

A firm's collection float is defined as Items held as a substitute for cash balances and as a temporary investment The time it takes to deposit checks that have been received by the firm, and for the bank to process the checks and to credit the company's account balance with "good funds." The amount of funds tied up in checks that have been written to pay Accounts Payable but which are still in process and have not yet been deducated from the checking account balance by the bank