Examlex

Solved

You Are Considering Implementing a Lockbox System for Your fiRm

question 140

Multiple Choice

You are considering implementing a lockbox system for your firm. The system is expected to reduce the collection time by 3 days. On an average day, your firm receives 680 cheques with an average
Value of $99 each. The daily interest rate on Treasury bills is .0125 percent. The bank charge per
Cheque would be $.15. What is the anticipated daily savings if this system is implemented?


Definitions:

Organic Product

A compound or material derived from living organisms or produced through organic reactions.

Acid Catalyst

A substance that increases the rate of a chemical reaction through donation of protons (H+ ions) without undergoing any permanent chemical change itself.

Acyclic Compound

A chemical compound that does not contain any rings in its structure, consisting of linear or branched chains of atoms.

Imine

A compound characterized by a nitrogen atom double-bonded to a carbon atom, often resulting from the condensation of a primary amine and an aldehyde or ketone.

Related Questions