How Are Checks Which Are Deposited into a Typical Lockbox

question 67

Multiple Choice

How are checks which are deposited into a typical lockbox handled?

• A) The checks are deposited into a local bank which then overnights one check for the entire amount to the firm.
• B) The checks are collected once a day, normally in the early morning, by a bank employee.
• C) The checks are posted to the customer's account prior to being deposited.
• D) The checks are collected throughout the day and immediately deposited into the firm's account.
• E) The checks are collected and sent overnight to the firm's main office for processing.

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Definitions:

Price Level

An index that measures the average prices of goods and services in an economy at a given time.

AS Curve

The Aggregate Supply curve, depicting the total supply of goods and services that firms in an economy will produce at different price levels.

Classical Theory of Employment

An economic theory that posits that the economy naturally operates at a level of full employment due to the flexibility of prices and wages.

Total Consumption

The aggregate amount of goods and services consumed by individuals and entities in an economy.