Customers That Send Their Payments Electronically Directly to the Billing

question 85

Multiple Choice

Customers that send their payments electronically directly to the billing company's bank are using

• A)electronic funds transfer (EFT).
• B)electronic data interchange (EDI).
• C)procurement cards.
• D)an electronic lockbox.

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Definitions:

Accounts Receivable

Funds that a company is entitled to receive from its customers for products or services that have been provided but not yet compensated for.

Accounts Over 30 Days

Accounts receivable that have not been paid within 30 days of the invoice date, indicating delayed payments.

Receivables Manager

A professional responsible for overseeing and managing a company's accounts receivable to ensure timely collection of owed money.

Receivables-To-Sales Ratio

A financial metric measuring the proportion of a company's receivables relative to its total sales, indicating how efficiently it collects on sales credit.