Answer:
Credit card float is the difference in time between the date of purchase and date when the payment is due.
Credit card Float = 54 days
Explanation:
The purchase date is the 1st January but the has only reflected on the credit card on the 3rd but date of purchase remains the 1st.
This is exactly like in depreciation 'available for use date' and 'date of use'
available for use is used to calculate depreciation, so we start on the purchase date.
on the date when payment is due
we have 25th of Feb and the 23rd of Feb the date of payment
we take 23rd the date of payment
just like in assets if an asset has a useful life of 3 years and is sold in the two years the only depreciation or accumulated depreciation we reflect is for the years before it is sold.
Therefore the float period is between 1 jan and 23 feb = 54days
