Lockbox arrangements for the collection of cash have which of the following as an advantage?

Question

Quizplus · Accepted Answer

Lockbox arrangements for the collection of cash have the advantage of directing cash to be deposited directly into the bank. This reduces the delay in collections and helps in quick updating of cash balances. Option A is incorrect because the manual processing shifts to the lockbox company, not necessarily a computer. Option C is incorrect because the bank can establish multiple lockboxes based on client requirements. Option D is incorrect because lockbox arrangements don't eliminate the customer's decision for the due date of payment.

Lockbox Arrangements for the Collection of Cash Have Which of the Following