Which of the Following Statements Is True

question 249

Multiple Choice

Which of the following statements is true?

• A) Collection float is the time that elapses between when a customer mails a payment and when the cheque is actually received.
• B) Collection float is the time that elapses between when the company receives a customer's payment and when the cheque is deposited in the bank.
• C) Collection float includes mail float while disbursement float does not.
• D) Collection float is the time that elapses between when the company deposits cheques into the bank and when the cheques are presented to the customers' banks for payment.
• E) Collection float is equal to the sum of mail and processing floats, minus the availability float.

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Definitions:

Labor Costs

The total expenditure incurred by employers for the compensation of employees, including wages, benefits, and taxes.

Production Function

An equation or model that describes the relationship between inputs used in production and the output of goods or services.

Capital

The financial assets or resources that businesses and individuals use to invest, produce goods and services, including buildings, machinery, and equipment.

Output

The quantity of goods or services produced in a given period by a firm, industry, or country.