Graph: Y = -6

question 2

Essay

Graph: y = -6

---

Definitions:

Ledger Float

The time difference between when a check is written and when it is actually deducted from the payer's account.

Collection Float

The time period between when a check is deposited into a bank account and when the funds are available.

Lockbox System

A service offered by banks to companies for the collection of payments from customers, speeding up the process of receiving and depositing checks.

Collection Float

The time between when a check is deposited into a bank and when the amount is credited, affecting cash flow management.