A method of reducing the collection float which utilizes the facilities of Canada Post is referred to as a _____ system.

Question

Quizplus · Accepted Answer

The correct answer is B) Lockbox. A lockbox system is a service offered by banks to companies for the receipt of payment from customers. Under the service, the payments made by customers are directed to a special post office box, rather than going to the company. Canada Post would deliver the payments to the bank's lockbox, and the bank would then process these payments directly. This system reduces the collection float by minimizing the time it takes for a company to receive and process payments.

A Method of Reducing the Collection Float Which Utilizes the Facilities