A(n) ________ is a P.O. box that can only be accessed by the company's bank. The bank collects the checks daily, deposits them into the company bank account, and sends source documents to the company.

Question

Quizplus · Accepted Answer

A lockbox is a service provided 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. The bank goes to the box, retrieves the payments, processes them and deposits the funds directly into the company's bank account. This accelerates the collection and processing of account receivables by having the bank directly receive and deposit checks.

A(n) ________ Is a P