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:

Making a Decision

The cognitive process of selecting a course of action from among multiple alternatives, often involving weighing the risks and benefits of different options.

Utility Theory

A theory in economics that attempts to describe how individuals make choices based on the perceived satisfaction or utility from outcomes.

Framing of the Announcement

The way in which an announcement is presented or communicated, which can influence the perception and reaction of the audience.

Decision Making

The cognitive process of selecting a course of action from among multiple alternatives.