Which of These Is Most Apt to Delay the Collection

question 108

Multiple Choice

Which of these is most apt to delay the collection of cash?

• A)Having customers mail checks to a local lockbox rather than the home office
• B)Depositing checks throughout the day
• C)Posting payments to accounts receivable prior to making deposits
• D)Collecting mail more frequently
• E)Supplying customers with bar coded payment slips

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Definitions:

At-risk Amount

The amount of money an investor could lose in an investment, emphasizing the capital actually at risk.

Passive Loss Rules

U.S. tax regulations that restrict the amount of losses investors can claim from passive activities to the amount of income generated by those activities.

Gain(Loss)

The profit or shortfall realized from an investment when comparing the sale price to the original purchase price.

At-risk Amount

The maximum amount of money an investor in certain activities can claim as a deduction or loss, limited to the actual cash, property, or borrowed amounts for which they are personally at risk.