Companies Use a Bank Lock-Box System To

question 42

Multiple Choice

Companies use a bank lock-box system to:

• A)ensure that all checks are properly received by the company's mailroom employees.
• B)get the cash to the bank in a more timely manner.
• C)allow the bank to post collections to customers' Account Receivable accounts.
• D)increase internal controls over their purchase and payment processes.

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Definitions:

Foreign Exchange Rate

The price of one currency in terms of another currency, used in international trade and investment.