A Customer Sends Payment to a Post Office Box Which

question 180

Multiple Choice

A customer sends payment to a post office box which is emptied by the firm's bank daily. The bank then processes the payments and notifies the firm of the day's collections. This collection technique is known as

• A) a direct send.
• B) concentration banking.
• C) the lockbox system.
• D) controlled disbursing.

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Definitions:

Accrued Expense

Expenses that have been incurred but not yet paid or recorded at the end of a reporting period.

Payback Periods

The duration of time it takes to recover the cost of an investment through the investment's cash flows.

Risks

The potential for losing something of value or the chance of an adverse outcome.