Which 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 collection time.
D) Processing delay is one of the components of the collection time.

Question

Quizplus · Accepted Answer

Delivery time or mailing time is part of the collection time, as it is the time it takes for the payment to physically reach the firm. The three components of collection time are mail float, processing float, and availability float. Processing delay is another name for processing float.

Which of the Following Statements About Collection Time Is NOT