Collection Time

question 215

Multiple Choice

Collection time:

• A) Is equal to mail time plus the processing delay minus the availability delay.
• B) Increases when payments are made electronically.
• C) Increases when customers' bills are sent electronically.
• D) Is decreased when customers pay at the point of sale rather than when they are billed.
• E) Is independent of the business nature of a firm.

---

Definitions:

Nominal Wage Rate

The wage rate paid to employees unadjusted for inflation, representing the amount of money received per unit of time.

Real Wage Rate

The compensation received per hour of work after adjusting for inflation, indicating the actual value of wages.

Consumer Price Index

A measure that examines the weighted average of prices of a basket of consumer goods and services, used as an indicator of inflation.

Nominal Wage Rate

The wage rate paid to employees expressed in current dollars, without adjustment for inflation or purchasing power.