Asked by Emanuela Tigistu on May 01, 2024
Verified
Accepting debit card transactions will decrease the total collection time for a firm.
Debit Card Transactions
Electronic fund transfers initiated by using a debit card, allowing the cardholder to withdraw cash or make purchases directly from their bank account.
Total Collection Time
The complete duration taken to collect payments owed by customers after a sale has been made.
- Acknowledge the value of electronic billing and payment systems in augmenting cash flow.
Verified Answer
ZK
Zybrea KnightMay 04, 2024
Final Answer :
True
Explanation :
Accepting debit card transactions typically results in funds being transferred to the firm's account quickly, often within 1-2 business days, thus decreasing the total collection time compared to traditional methods like checks or credit sales that can take longer to process and clear.
Learning Objectives
- Acknowledge the value of electronic billing and payment systems in augmenting cash flow.