Companies use a bank lock-box system to:
A)ensure that all checks are properly received by the company's mailroom employees.
B)get the cash to the bank in a more timely manner.
C)allow the bank to post collections to customers' Account Receivable accounts.
D)increase internal controls over their purchase and payment processes.

Question

Quizplus · Accepted Answer

A bank lock-box system is used to expedite the collection and deposit of checks, ensuring that cash is deposited into the company's bank account more quickly.

Companies Use a Bank Lock-Box System To