Float

Accounting Dictionary

Float

Float is the time between the time you signed a check and the time it is cashed at the bank.

If I wrote the electric company a check on Monday, mailed it on Tuesday, they received it on Wednesday, and cashed it on Thursday, the float would be 4 days. Four days have passed between the time I wrote the check on Monday and the time the money was taken out of my account on Thursday.

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