If Services for the Month Total $3,300 in Cash and $700

question 66

True/False

If services for the month total $3,300 in cash and $700 on account,Accounts Receivable increases $700.

---

Definitions:

Average Collection Period

The average number of days it takes for a company to receive payments owed by its customers, indicating the efficiency of a company's credit and collection policies.

Net Float

The difference between checks written against and deposited in an account, not yet cleared by the financial institution.

Cash Inflows

Money received by a business from its various activities, including sales, financing, and investments, contributing to its net cash flow.

Lockbox Systems

A service offered by banks to companies for the receipt of payment from customers, involving the use of specially designed lockboxes to speed up collections.