By Getting Closer to the Source of Payment, Lockboxes Can

question 12

Multiple Choice

By getting closer to the source of payment, lockboxes can be used to reduce:

• A) availability or clearing float.
• B) mail float.
• C) in-house processing float.
• D) disbursement float.

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Definitions:

Merchandising Company

A company that purchases goods ready for sale and sells them to customers, typically involved in retail or wholesale trade.

Service Company

A business that provides intangible products or services to consumers, rather than physical goods.

FOB Destination

A shipping term where the seller is responsible for the transportation costs and risks until the goods reach the buyer's specified location.

Freight Costs

Expenses associated with transporting goods from one place to another, which may include shipping, handling, and insurance fees.