A Lockbox System

question 80

Multiple Choice

A lockbox system:

• A) entails the use of a bank that is centrally located to collect payments on a nationwide basis.
• B) is designed to deposit payments prior to recording those payments to the customers' accounts.
• C) is used to reduce disbursement float.
• D) is efficient regardless of the locations selected for lockbox destinations.
• E) automatically records payments to customers' accounts as soon as the payments are received at the lockbox location.

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Definitions:

Agency Policy

A principle or rule adopted by an organization or government entity to guide decisions and achieve rational outcomes.

Administrative Agency

A government body responsible for implementing legislation, enforcing laws, and regulating activities within its jurisdiction.

Congress

The national legislative body of the United States, consisting of the Senate and the House of Representatives.

Funding

Funding refers to the financial resources provided for a specific purpose, such as running a project, a business venture, or a research initiative.