Some companies use a lockbox system,whereby customers mail payments to a post office box address.The lockbox contents could be handled by a bank,another external organization,or the owner of the company.One of the advantages of using a lockbox is that it
A)improves segregation of duties.
B)results in more accurate bank deposits.
C)results in more accurate accounts receivables.
D)provides more detailed bank deposit information.

Question

Quizplus · Accepted Answer

The lockbox system improves segregation of duties by involving an external party (like a bank) to handle the receipt and processing of payments, separating the handling of cash from the accounting functions within the company.

Some Companies Use a Lockbox System,whereby Customers Mail Payments to a Post