On 2024-04-09 05:25, Kalpesh Patel wrote: > In the states, isn't that what is called "floats"? > > -----Original Message----- > From: Liz <ed...@billiau.net> > Sent: Monday, April 08, 2024 6:50 PM > I think it is a philosophical difference. > There are legal ramifications, especially when you are spending money. > If you future date transactions you may spend money you don't actually > have. In my jurisdiction a business doing this is in big trouble, for > "trading while insolvent". > It is not the difference between cash and accrual accounting, but is > part of the differences.
Yes and no. The American Heritage Dictionary defines "float" as "a. A sum of money representing checks that are outstanding. b. The time between the issuing or depositing of a check and the [crediting or] debiting of the issuer's account. c. The time during which a credit card purchase can be repaid without interest." Float still exists, but banks are always adopting technology to shorten the time. For instance, paper checks usually do not travel back to your bank any more. These days, a check you write to any business but the very smallest will most likely be transmitted as an image, not paper, and will be reflected in your account within a day or two. Writing a check when you don't have the money in your account to cover it can subject you to both civil and criminal penalties for fraud. The AHD defines "check kiting" as "The act of writing a check on a bank account in an amount in excess of actual funds on deposit in the account and then depositing that check in a second account at a different bank to create a spurious deposit there, allowing checks to be drawn, or credit secured, based on the second account, until the fraud is discovered." Stan Brown Tehachapi, CA, USA https://BrownMath.com _______________________________________________ gnucash-user mailing list gnucash-user@gnucash.org To update your subscription preferences or to unsubscribe: https://lists.gnucash.org/mailman/listinfo/gnucash-user ----- Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All.
