Collection Float Is the __________

question 245

Multiple Choice

Collection float is the __________.

• A) Total time between the mailing of the check by the customer and the availability of cash to the receiving firm
• B) Time consumed in clearing the check through the banking system
• C) Time the check is in the mail
• D) Time during which the check received by the firm remains uncollected

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Definitions:

Delivery

The act of transferring something from one party to another, often referring to goods, but can also apply to the delivery of services or legal documents.

Liquidated Damages

Pre-determined damages agreed upon by parties in a contract, to be paid if one party breaches the contract.

Article 2A

A specific portion of the Uniform Commercial Code that governs leases of personal property.

Buyer's Remedies

Legal actions available to a buyer when a seller fails to fulfill their contractual obligations, including recovery of damages and cancellation of the contract.