A System Where Customers Send Their Checks Directly to the Company's

question 58

Multiple Choice

A system where customers send their checks directly to the company's bank account is described as which of the following?

• A) An encryption system
• B) An imprest system
• C) A lock-box system
• D) A firewall system

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Definitions:

Order Paper

A document listing all the items of business scheduled to be considered by a parliament or other legislative body on a specific day.

Negotiated

The process through which parties come together to discuss and settle upon the terms of an agreement or contract.

Without Recourse

A term indicating that the seller of a financial instrument relinquishes the right to demand payment from the buyer in case of non-payment.

Indorser's Liability

The responsibility assumed by an endorser (or indorser) when they sign a negotiable instrument, making them liable if the instrument is not honored.