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.

Question

Quizplus · Accepted Answer

In a lock-box system, customers send their payments directly to a post office box, but this box is actually controlled by the bank, not the company. The bank processes the payments and deposits them directly into the company's account, which enhances security and efficiency.

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