Using a lock-box system
A) expedites the cash flow for a company.
B) helps to reduce interest income lost due to delays in depositing out-of-state-checks.
C) promotes the segregation of duties because a third-party handles cash receipts.
D) All of these answers are correct.

Question

Quizplus · Accepted Answer

A lock-box system expedites the cash flow for a company by speeding up the processing of payments. It also helps to reduce interest income lost due to delays in depositing out-of-state checks. Additionally, it promotes the segregation of duties because a third-party handles cash receipts. Therefore, all of these answers are correct.

Using a Lock-Box System