A lock-box system reduces theft and places the business's cash in circulation faster than if the cash is collected and deposited by company personnel.

Question

Quizplus · Accepted Answer

A lock-box system involves payments made directly to a bank-operated address (the lock-box), where the bank collects and deposits the funds directly into the company's account, reducing the handling time and risk of theft compared to traditional methods involving company personnel.

A Lock-Box System Reduces Theft and Places the Business's Cash