Lockbox arrangements for the collection of cash have which of the following advantages?
A) The manual processing associated with maintaining control of the receipts is now shifted to a computer.
B) Cash is deposited directly into the bank.
C) The bank usually establishes only one lockbox geographically next to the client to minimize delay in collections.
D) Eliminates the customer decision for the due date of payment.

Question

Quizplus · Accepted Answer

Lockbox arrangements for the collection of cash have the advantage that cash is deposited directly into the bank, eliminating the need for manual processing and reducing the risk of loss or theft. The bank may establish multiple lockboxes in different locations to ensure timely collection of funds. However, lockbox arrangements do not typically involve eliminating the customer's decision for the due date of payment.

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