Transit Float Is Caused by

question 139

Multiple Choice

Transit float is caused by

• A) the time necessary for a deposited check to clear the banking system and become usable funds to the company.
• B) the time funds are not available, through the company's bank account, until its payment check has cleared the banking system.
• C) the elapsed time from the moment a customer mails his remittance check until the firm begins to process it.
• D) the time required for the firm to process remittance checks.