What Is a Lockbox Plan

question 31

Multiple Choice

What is a lockbox plan?

• A) It is used for safe-keeping cash and marketable securities.
• B) It is used to identify inventory safety stocks.
• C) It is used to slow down the collection of cheques a firm writes.
• D) It is used to speed up the collection of cheques received.

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Definitions:

Undertake Business

The act of engaging in commercial or professional activities, usually with the objective of generating profit.

Jointly Profit

A situation where two or more parties share the financial gains from a business endeavor or investment.

Partnership Dissolution

The legal termination of a partnership agreement, leading to the cessation of business activities and the distribution of assets.

Formal Disbanding

The official process of dissolving an organization, group, or entity and ceasing its operations.