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:

Critical Competence

Essential skills or capabilities necessary for effectively performing a specific job or task.

Functional

Relating to the natural operation or purpose of something, often seen in terms of departments or roles within organizations.

Divisional

Pertaining to a type of organizational structure where operations are segmented based on divisions, each focusing on a particular product line or geographic area.

Resources

Assets or inputs needed by an organization or individual to produce goods or services.