A System of Handling Cash Receipts by Mail Whereby Customers

question 123

Multiple Choice

A system of handling cash receipts by mail whereby customers send checks in payment of their accounts directly to a post office box controlled by a bank is a(n) :

• A)imprest system.
• B)lock-box system.
• C)phishing system.
• D)online banking system.

---

Definitions:

Balance Sheet

A financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time, providing a basis for computing rates of return and evaluating its capital structure.

Capital Balances

The amounts recorded in the capital accounts of partners or owners reflecting their stakes or investments in the business.

Goodwill

An intangible asset that arises when a company acquires another for a price higher than the fair value of its net identifiable assets.

Capital Balances

The amounts recorded in the equity section of a company's balance sheet, representing the funds contributed by owners plus retained earnings.