Asked by Kristen Phelps on Jul 07, 2024
Verified
Disbursement float is created by cheques which have been deposited into a firm's bank account but which have not yet cleared.
Disbursement Float
The time lag between a payment being made by a company and the actual withdrawal of funds from the company's account.
Deposited
Placing money into a financial account or institution for safekeeping or investment purposes.
- Understand the concept of disbursement and collection float and their impacts on a firm's cash management.
Verified Answer
SC
Susan CantuJul 12, 2024
Final Answer :
False
Explanation :
Disbursement float is created by cheques that a company has issued and recorded in its books, but which have not yet been cleared or deducted from its bank account.
Learning Objectives
- Understand the concept of disbursement and collection float and their impacts on a firm's cash management.
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