Which One of the Following Statements Is Correct Concerning a Cash

question 70

Multiple Choice

Which one of the following statements is correct concerning a cash management system that employs both lockboxes and a concentration bank account?

• A)All customer payments must be submitted to a lockbox.
• B)The party which collects the checks from the lockbox is responsible for recording the payment on the customer's account.
• C)Payments received in a lockbox are transferred immediately to the concentration account.
• D)The firm's cash manager determines how the funds in the concentration account are disbursed.
• E)The concentration account must be zeroed out on a daily basis.

---

Definitions:

Group Selection

A theoretical evolutionary process that argues for the selection of traits beneficial to a group, rather than individuals.

Biologists

Scientists who study living organisms and their interaction with the environment, covering various fields from marine biology to genetics.

Delay of Gratification

The ability or process of resisting the temptation of an immediate reward in preference for a later, often greater reward.

Time Trade-offs

The decision-making process in which individuals allocate their time among various activities, often involving compromises due to limited time resources.