Which one of the following is most apt to delay the collection of cash?
A)Having customers mail checks to a local lockbox rather than the home office
B)Depositing checks throughout the day
C)Posting payments to accounts receivable prior to making deposits
D)Collecting mail twice daily
E)Supplying customers with bar coded payment slips

Question

Quizplus · Accepted Answer

Posting payments to accounts receivable prior to making deposits can delay the collection of cash because the funds are not immediately available for use. Posting payments to accounts receivable is necessary for accurate record-keeping, but delaying the deposit of funds can have an impact on cash flow. The other options listed may actually speed up the collection process.

Which One of the Following Is Most Apt to Delay