Which of These Is Most Likely the Fastest Method of Collecting

question 35

Multiple Choice

Which of these is most likely the fastest method of collecting cash?

• A)Requiring customers to submit all payments to a lockbox
• B)Requiring customers to submit all payments to the home office
• C)Initiating a financial electronic data interchange at the time of sale
• D)Offering customers credit terms of 1/5, net 15
• E)Eliminating all disbursement float

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Definitions:

Equity Investments

Investments in stock or equity interests in entities, representing ownership interest.

Adjusted Trial Balance

A list of all the accounts and their balances after adjusting entries have been made, used to prepare financial statements.

External Reporting

The process of providing financial statement information to external stakeholders such as investors, creditors, and regulatory agencies.

Statement of Income

A financial document that shows a company's revenues, expenses, and profits or losses over a specific period of time.