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Which One of the Following Statements About Collection Time Is

Question 55

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 company.
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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