A Customer Is Instructed to Send His Remittance Advice and Check

question 23

Multiple Choice

A customer is instructed to send his remittance advice and check to a bank's postal address.This method for collecting customer cash receipts is called:

• A)electronic funds transfer
• B)automated clearing house
• C)Check 21
• D)lockbox

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Definitions:

Variances

Differences between planned or expected financial outcomes and the actual results, typically used in budgeting and performance assessment.

Standard Costs

A predetermined cost of manufacturing, distributing, or selling products or services, which is used for budgeting and assessing performance.

Manufacturing Overhead

The indirect costs associated with manufacturing, not directly assignable to a specific product, such as factory rent, utilities, and equipment maintenance.

Cash Account

An account that records cash transactions, including cash received and cash paid out, within a business.