Which of the Following Is the Technique for Reducing Collection

question 50

Multiple Choice

Which of the following is the technique for reducing collection float by having funds sent to several geographically situated regional banks and then transferring to a main concentration account in another bank?

• A) Lockbox system
• B) Concentration banking
• C) Wire transfers
• D) Collection float

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Definitions:

Tax Rate

The quota of taxable income that the government demands from individual earners or corporate entities.

Financially Distressed

A condition where a company or individual cannot generate sufficient revenue to meet its financial obligations, potentially leading to bankruptcy.

Operating Concern

A business enterprise that is functioning and not in the process of liquidation.

Liquidation

The process of winding up a company's affairs by selling off its assets to pay creditors and distribute any remaining assets to shareholders.