What are the two types of collections described?

• A. Immediate and Delayed
• B. Direct and Indirect
• C. Internal and External
• D. Cash and Credit

Answer: (B)

The concept being tested is how collections are categorized by the method used to obtain them. The two described types are direct and indirect. Direct collection means handling the gathering or retrieval of resources straight from the source, with immediate control and fewer intermediaries. Indirect collection uses a third party or intermediary to perform the collection, which can broaden reach and leverage specialized processes, but adds steps and potential delays. This emphasis on the method of collection makes direct and indirect the best fit for describing the two types. The other options describe when collection happens, the form it takes, or where it originates, which don’t capture the method of collection itself.