The Time Between When a Payee Sends Payment and the Funds

question 144

Multiple Choice

The time between when a payee sends payment and the funds are credited to the payee's bank account is called the:

• A) collection float
• B) disbursement float
• C) total float
• D) transmittal float

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Definitions:

Shareholder Wealth

The total value of an investment in a company's stock, encompassing capital gains and dividends received over time.

Cash Flows

The comprehensive total of cash and similar to cash assets transferred into and from a business.

Payback Period

The duration needed to recoup the funds spent on an investment.

Initial Cost

The initial expenditure involved in starting a project, purchasing an asset, or initiating an investment.