Which of the Following Bank Collection Services Allows Accounts Receivable

question 46

Multiple Choice

Which of the following bank collection services allows accounts receivable payments to be sent directly to the bank?

• A)zero-balance accounts
• B)automated clearing house network
• C) lockbox service
• D) none of the above

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Definitions:

Expensed

Costs that are charged against income in the period they are incurred, rather than being capitalized and amortized over time.

Finite Life

Finite life refers to the fixed period during which an asset is expected to be useful before it becomes obsolete or its value is fully depreciated.

Intangible Assets

Non-physical assets that have value, such as patents, copyrights, trademarks, and goodwill.

Amortization Expense

Amortization expense is the gradual charging to expense of the cost of an intangible asset over its useful life.