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:

Primi-

A prefix in medical terms variously meaning first or early, often used in conjunction with conditions or statuses related to pregnancy.

Prefix

a syllable or word that is added to the beginning of another word to alter its meaning or create a new word.

Similar

Resembling without being identical; having qualities in common or a close resemblance.

Same

Identical; exactly alike or equal in some specified quality or characteristic.