Which of the Following Statements Is True

question 249

Multiple Choice

Which of the following statements is true?

• A) Collection float is the time that elapses between when a customer mails a payment and when the cheque is actually received.
• B) Collection float is the time that elapses between when the company receives a customer's payment and when the cheque is deposited in the bank.
• C) Collection float includes mail float while disbursement float does not.
• D) Collection float is the time that elapses between when the company deposits cheques into the bank and when the cheques are presented to the customers' banks for payment.
• E) Collection float is equal to the sum of mail and processing floats, minus the availability float.