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Remote disbursement definition

Accounting Tools

Remote disbursement involves the use of check payments that are drawn on remote bank locations, thereby lengthening the duration of the disbursement float. A payer with a substantial disbursement float can use the associated cash for a longer period of time, which incrementally increases its investment income.

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Availability float definition

Accounting Tools

Related Courses Corporate Cash Management Treasurer's Guidebook What is Availability Float? Availability float is the time between when a check is deposited and when the funds are available to the recipient. The availability float works in favor of the payer , which retains use of its funds during the float period.

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Float definition

Accounting Tools

Related Courses Corporate Cash Management Payables Management Treasurer's Guidebook What is Float in Finance? Float is the interval between when a check is written and when it clears the bank account on which it was drawn. Float also refers to the number of shares of a company’s stock that are available for trading.

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Mail float definition

Accounting Tools

Related Courses Corporate Cash Management Payables Management What is Mail Float? Mail float is the time required for a check payment to travel from the payer to the payee through the postal system. The duration of this mail float will cost the recipient interest income , since the funds have not yet arrived, and so cannot be invested.

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Value date definition

Accounting Tools

The value date may be categorized by the bank as 1-day float, 2+-day float, or some similar term. Related Articles Availability Float Mail Float Presentation Float Processing Float Once the value date is reached, the payee has use of the funds.

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Float management definition

Accounting Tools

Related Courses Investor Relations Guidebook Public Company Accounting and Finance What is Float Management? Float management involves keeping a large number of shares available for trading. The investor relations staff can have an impact on a company’s float by paying attention to the following float management activities.

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Cash disbursement definition

Accounting Tools

If a payment is made with a check, there is typically a delay of a few days before the funds are withdrawn from the company's checking account , due to the impact of mail float and processing float. Related AccountingTools Course Payables Management Related Articles Check Payment Electronic Payment Procedure The Payment Factory