Which of the following is true of collection float? A) It represents

Which of the following is true of collection float?

A) It represents the time delay between when payment is placed in the mail and when it is received.
B) It represents the time between receipt of a payment and its deposit into a firm’s account.
C) It results from the lapse between the time when a firm deducts a payment from its checking account ledger and the time when funds are actually withdrawn from its account.
D) It results from the delay between the time when a customer deducts a payment from the checking account ledger and the time when the vendor actually receives the funds in a spendable form.

ANSWER

D