A System by Which Firms Assign Their Customers for Collection

question 21

Multiple Choice

A system by which firms assign their customers for collection purposes to regional banks that transfer funds to a central bank is known as:

• A) a lock-box system.
• B) a zero-balance account.
• C) a wire transfer.
• D) concentration banking.

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Definitions:

Implied Warranty

A warranty that the law derives by implication or inference from the nature of the transaction or the relative situation or circumstances of the parties.

Warranty of Merchantability

An implied guarantee that a product will meet the standard quality and performance expectations for goods of its kind.

Garage Sale

An informal, often temporary sale of used goods by private individuals, typically held at the seller's residence.

Express Warranty

A written or spoken promise from a seller about the quality or functionality of a product.