A lockbox plan is
A) used to protect cash,i.e. ,to keep it from being stolen.
B) used to identify inventory safety stocks.
C) used to slow down the collection of checks our firm writes.
D) used to speed up the collection of checks received.
E) used primarily by firms where currency is used frequently in transactions,such as fast food restaurants,and less frequently by firms that receive payments as checks.

Question

Quizplus · Accepted Answer

A lockbox plan is used to speed up the collection of checks received. It involves the use of a post office box which is maintained by a bank. The bank has access to the box, collects the checks, processes them and deposits the funds into the firm's account. This helps companies to receive their payments quickly and efficiently.

A Lockbox Plan Is