Disbursements float: A) occurs when a deposit is recorded but the funds are unavailable. B) causes the book balance to exceed the bank balance. C) has tended to decrease the net float of the firm D) is a recommended source of funds for short-term investments. E) is generally more desirable to companies than collection float.

The correct answer is letter "E": is generally more desirable to companies than collection float.

Explanation:

Disbursement floats refer to the amount of money a company has spent but has not been discounted from its account yet. This usually happens when the company makes wire transfers to different banks or issues checks that take to clear some days.  

Disbursement floats are preferred for a company compared to collection float since the latter is based on debts that the firm has not been able to pay yet while disbursement floats are just the result of unfinished transactions the company has already taken responsibility for.

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