A lockbox system that accelerates cash collections also decreases a firm's receivables.

Name: A lockbox system that accelerates cash collections also decreases a firm's receivables.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

By using a lockbox system, customers can send their payments directly to a bank lockbox which speeds up the cash collection process. As a result, the time between when a sale is made and when the cash is received is reduced, which decreases the firm's receivables.

A Lockbox System That Accelerates Cash Collections Also Decreases a Firm's