Which of the Following Is Not a Method of Speeding

question 23

Multiple Choice

Which of the following is not a method of speeding up collections?

• A) Lock-box system
• B) Use of local bank branches to deposit funds
• C) Extended disbursement float
• D) Electronic fund transfer

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Definitions:

Accounting Equation

The foundational principle of accounting, stating that assets equal liabilities plus equity.

Source Documents

Original records that contain the details of a business transaction, such as invoices, receipts, and contracts.

Ledger Accounts

Accounts recorded in a ledger, representing a record of the financial transactions by type, whether it's assets, liabilities, equity, income, or expenses.

Cash Distribution

The payment of earnings or capital to shareholders, partners, or owners in the form of cash.