Asked by Brittany Moncrief on Jul 12, 2024
Verified
Disbursement float is virtually eliminated when payments are made electronically.
Disbursement Float
The time lag between when a payment is made by a company and when the funds are actually removed from the company's bank account.
Electronically
Through the use of electronic devices or systems, especially over digital networks.
- Recognize the significance of electronic transactions and their influence on reducing collection and disbursement floats.
Verified Answer
OW
Oliad WeldesenbetJul 13, 2024
Final Answer :
True
Explanation :
Electronic payments are processed and settled quickly, often in real time or within the same day, which significantly reduces or eliminates the delay between the time a payment is initiated and the time it is deducted from the payer's account, known as disbursement float.
Learning Objectives
- Recognize the significance of electronic transactions and their influence on reducing collection and disbursement floats.