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.

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Definitions:

Winner's Curse

A phenomenon in auctions where the winner tends to overpay due to incomplete information or overly optimistic valuation of the asset.

Rivals' Information

Data or intelligence about competitors’ strategies, performance, and operations, useful for gaining a competitive advantage in the market.

Fewer Bidders

a situation in auctions or competitive environments where there is a reduced number of participants bidding for the same item or contract.

Common-value Auction

An auction format where the item for sale has the same value for everyone but the bidders have different information about that value.