All of the Following Are Components of Float Except

question 52

Multiple Choice

All of the following are components of float except:

• A)the time it takes the receiving firm to make a sale on credit and receive payment from the purchasing firm.
• B)the time it takes the cheque to clear through the banking system so that the funds are available to the firm.
• C)the time it takes the receiving firm to process the cheque and deposit it in an account.
• D)the time it takes the cheque to reach the firm after it is mailed by the customer.

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Definitions:

Separate Business

An entity or operation that functions independently from any other business interests held by the owners.

Rescind

To officially cancel, revoke, or repeal a legal agreement, contract, or decision.

Verbal Offer

An offer made through spoken communication, rather than in written form, which can be binding under certain conditions.

Binding Contract

An agreement between two or more parties that is enforceable by law.