A Common Cash Management Technique Used to Speed Up Collections

question 17

Multiple Choice

A common cash management technique used to speed up collections from a customer's bank account to a retailer's bank account is:

• A) a lockbox system.
• B) a mail float system.
• C) a point-of-sale system using debit cards.
• D) an in-house processing float system.
• E) an availability float system.

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Definitions:

Glucagon

A hormone produced by the pancreas that raises blood glucose levels by promoting the conversion of stored glycogen into glucose in the liver.

Glycogen

A large, branched polysaccharide that serves as a form of energy storage in animals and fungi; it is primarily stored in the liver and muscle cells.

Adrenal Medulla

Inner portion of the adrenal gland; secretes the hormones epinephrine and norepinephrine.

Hormones

Chemical substances produced in the body that regulate and control the activity of certain cells or organs, essential for every bodily function.