Lockboxes Are Used To

question 253

Multiple Choice

Lockboxes are used to:

• A) Distribute payroll cheques.
• B) Protect the cash holdings of a firm.
• C) Distribute payments to outlying suppliers.
• D) Maintain safety reserves of cash.
• E) Collect customer payments more efficiently.

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Definitions:

Debtor

An individual or entity that owes money to another party.

Foreclosure Proceeding

A legal process by which a lender seeks to recover the balance of a loan from a borrower who has stopped making payments by forcing the sale of the asset used as the collateral for the loan.

Redeem

To recover possession of something by paying a specified amount, or to fulfill a promise or obligation.

Default

Failure to fulfill an obligation, especially failure to meet a financial commitment or appear in a court of law.