Which One of the Following Statements About Collection Time Is

question 29

Multiple Choice

Which one of the following statements about collection time is NOT true?

• A) Collection time, or float, is the time between when a customer makes a payment and when the cash becomes available to the firm.
• B) Collection time can be broken down into three components.
• C) Delivery time or mailing time is not part of the float.
• D) Processing delay is part of the collection time.

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Definitions:

Economically

Pertaining to the economy, financial considerations, or the efficient use of resources.

Abusive Partners

Individuals in a relationship who engage in behaviors that control, harm, or intimidate their partner physically, emotionally, or psychologically.

Higher Propensity

An increased likelihood or tendency to exhibit a particular behavior or to develop a certain condition.

Rationalize

The process of explaining or justifying behavior or attitudes with logical, plausible reasons, even if these are not the real reasons.