What is Cash Float? - Definition & Types


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question 1 of 3

If company A is sending money to Company B, then what is the disbursement float for Company A?

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1. What did the federal legislation Check 21 allow financial institutions to do?

2. What is collection float?

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About This Quiz & Worksheet

Assess how well you understand forms of cash float with this worksheet and attached quiz. Questions will address electronic checks and how technology has changed modern finance.

Quiz & Worksheet Goals

Use the quiz and worksheet to see how well you know how to:

  • Interpret distribution float for a given scenario
  • Analyze the federal 'Check 21' legislation
  • Explain collection float
  • Determine net float for a given example
  • Understand the influence of Check 21 on cash float and the payment of funds

Skills Practiced

Practice the following study skills:

  • Making connections - use understanding of the concept of cash float and how it is connected to Check 21
  • Defining key concepts - ensure that you can accurately define main phrases, such as Check 21 and collection float
  • Information recall - access the knowledge you've gained regarding distribution float

Additional Learning

Use the lesson named What is Cash Float? - Definition & Types for more knowledge. The lesson will teach you how to do the following:

  • Define cash float
  • Explain disbursement float
  • Compare and contrast net float and collection float
  • Assess how float can be managed