Disbursement float is created by any transaction which decreases a firm's book balance but not its available cash balance.

Disbursement Float

The time delay between when a check is issued and when it is actually deducted from the payer's bank account, affecting cash management.

Transaction

An agreement or exchange between two parties that involves the sale, purchase, or trade of goods, services, or information.

Book Balance

The Book Balance represents the amount of money a company records in its accounting records, not necessarily reflecting the available or actual cash on hand.