A lock-box is used by the selling corporation to speed up the check collection and check-clearing process.

Question

Quizplus · Accepted Answer

A lock-box system allows checks to be sent directly to a bank assigned by the corporation, rather than being sent to the corporation and then deposited in their own bank account. This speeds up the process of receiving and clearing checks, ultimately improving cash flow for the corporation.

A Lock-Box Is Used by the Selling Corporation to Speed