A Lockbox Plan Is

question 71

Multiple Choice

A lockbox plan is

• A) A method for safe-keeping of marketable securities.
• B) Used to identify inventory safety stocks.
• C) A system for slowing down the collection of checks written by a firm.
• D) A system for speeding up a firm's collections of checks received.
• E) Not described by any of the statements above.

---

Definitions:

Polar

Describes molecules or bonds with an uneven distribution of charge due to differences in electronegativity, leading to partial positive and negative ends.

Tertiary Chloride

A compound featuring a chloride ion (Cl-) attached to a carbon atom, which in turn is connected to three other carbon atoms.

Primary Chloride

A chloride compound where the chlorine atom is bonded to a carbon atom that is itself bonded to no more than one other carbon atom.

Secondary Chloride

An organic compound where the chloride ion (Cl-) is attached to a carbon atom that is itself directly bonded to exactly two other carbon atoms, typically more reactive than tertiary chlorides.