It Takes Your fiRm 2 Days to Prepare and Mail

question 159

Multiple Choice

It takes your firm 2 days to prepare and mail out the monthly statements to your customers. On average, the mail time between your firm and your customers is 4.5 days. It takes your firm an
Average of 2.5 days to process customer payments once they are received. Customer cheques
Take an average of 1 day to clear the bank. What is your total collection time?

• A) 4.5 days
• B) 7.0 days
• C) 8.0 days
• D) 10.0 days
• E) 13.5 days

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Definitions:

Bank Regulators

Authorities or organizations responsible for supervising and regulating banks and financial institutions to ensure financial stability and compliance with laws.

Triggers

Conditions or events that initiate a specific action or process.

Modify or Waive

The act of making changes to the conditions or requirements of an agreement, or choosing not to enforce them.

Immediate Repayment

The requirement to pay back borrowed funds or settle a debt without delay, often immediately after the funds are disbursed.