All listening is counted and is tabulated only for the market the panelist lives in. If a particular station does not meet the minimum reporting standards, it does not "make the book". And if it is not subscribed, the data will not show in the public release of ratings.
Yes, but it will only show publicly if the station subscribes to the NYC book and meets minimum standards.
People are counted in the market where they live. Advertisers want to know the behaviour of local residents in each market. Out of market signals listened to in any rated markets are registered in the market where the panelist or diary holder lives.
There are no inaccuracies in this area. If you are a Nielsen diary keeper or meter holder, whatever you listen to is attributed to the total listening of people in the market they live in. If you want an accurate measurement of what residents of a market do, you include their listening to out of market stations and/or their listening if they travel out of market. That is the only way to show what goes on with residents of each market, including total radio listening.
Of course, stations don't subscribe to the books in nearby markets as they can't get extra revenue from that listening. That is why, for example, nearly no station in LA subscribes to the Riverside San Bernardino ratings because, even if an LA station is in the top 5 in that adjacent market, they will get no added revenue because that is not how agencies buy radio.