Which of the Following Is NOT True Regarding Cash Collections

question 15

Multiple Choice

Which of the following is NOT true regarding cash collections from customers?

• A) Most companies have a time lag between earning the revenue and collecting the cash.
• B) Collections from customers are the single most important source of cash for any business.
• C) A company's collections from customers can be computed by analyzing their Accounts Receivable account.
• D) Cash collections from customers will be a debit to Accounts Receivable account.

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Definitions:

Effective

Capable of producing intended or desired results, often used to describe techniques, policies, or actions that achieve their objectives efficiently.

Society

A group of individuals involved in persistent social interaction, or a large social grouping sharing the same geographical or virtual territory, subject to the same political authority and dominant cultural expectations.

Reciprocity

The obligation to return in kind what another has done for us.

Neighbor

An individual who lives near or next to another; in a broader sense, anyone with whom one shares a close proximity geographically.