Which of the Following Statements Regarding a Lock-Box System Is

question 187

Multiple Choice

Which of the following statements regarding a lock-box system is incorrect?

• A) Customers send their checks directly to a post office box that belongs to the company.
• B) Internal control is tight because company personnel never touch incoming cash.
• C) A bank employee empties the box daily and records the deposits into the company's bank account.
• D) Cash is put into the company's bank account quickly.

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Definitions:

George F. Kennan

An American diplomat and historian recognized for his influential role in establishing the U.S. policy of containment during the Cold War.

Journal Foreign Affairs

A leading publication focused on international relations, foreign policy, and significant global issues.

Impervious

Not allowing fluid to pass through; unable to be affected or penetrated.

Truman Doctrine

was a U.S. foreign policy strategy announced in 1947, aimed at containing communism by providing military and economic aid to countries threatened by Soviet forces.