The Rule of 72 Is a Rule of Thumb to Determine

question 93

True/False

The rule of 72 is a rule of thumb to determine how something increases over time in a linear or simple growth fashion.

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Definitions:

Lockbox Systems

A service offered by banks to companies for the receipt of payment from customers, involving the use of specially designed lockboxes to speed up collections.

Lockbox Plan

A banking service that speeds up collection and processing of company receipts by having those payments mailed directly to a location accessible by the bank.

Collection Of Cheques

Collection of Cheques refers to the process banks undertake to collect the amount specified on a cheque from the bank upon which the cheque is drawn.

Collections Float

The time gap between when a check is deposited into a bank account and the funds are available for use.