Question

Destin Industries received a $60,000 check from one of its customers, deposited it into its bank account, and recorded it in its bank register. The funds were reflected in Destin’s bank account two days later. What type of float does this scenario describe? Collection float Net float Disbursement float

Answer 1

Collection float

Step-by-step explanation:

Collection float is defined as the time interval between check payment made into a bank and the time the payment is cleared and credited to the beneficiary.

It is also caused when check payment received are not yet deposited or checks posted by customer but it is not yet received.

It is a major factor of discrepancy between the bank statement and the cash book record .