Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Check clearing and the use of float Float is defined as the difference between the balance shown on the books and the balance in the

Check clearing and the use of float
Float is defined as the difference between the balance shown on the books and the balance in the bank account. A lag often occurs between the time receipts and disbursements are recorded on the company's books and when the transactions clear the bank.
Consider the following scenario:
Destin Industries received a $20,000 check from orfe of its customers, deposited it into its bank account, and recorded it in its bank register. The funds were reflected in Destin's bank account two days later.
What type of float does this scenario describe?
Collection float
Disbursement float
Net float
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Institutions Management

Authors: Anthony Saunders, Marcia Cornett

8th Edition

0078034809, 978-0078034800

More Books

Students also viewed these Finance questions

Question

6. Identify seven types of hidden histories.

Answered: 1 week ago

Question

What is human nature?

Answered: 1 week ago