The benefits of a lockbox system include all of the following EXCEPT
A) increased working cash.
B) elimination of clerical functions.
C) increase in total float.
D) early knowledge of dishonored checks.

Question

Quizplus · Accepted Answer

The lockbox system is designed to decrease the total float, as it speeds up the collections process by reducing the time it takes for checks to be received and processed. Therefore, choice C, stating that there is an increase in total float, is incorrect. Choices A, B, and D are all benefits of implementing a lockbox system.

The Benefits of a Lockbox System Include All of the Following