Which one of the following is most likely the fastest method of collecting cash?
A)Requiring customers to submit all payments to a lockbox
B)Requiring customers to submit all payments to the home office
C)Initiating a financial electronic data interchange at the time of sale
D)Offer customers credit terms of 1/5, net 15
E)Eliminating all disbursement float

Question

Quizplus · Accepted Answer

Initiating a financial electronic data interchange at the time of sale allows for immediate transfer of funds electronically, which is the fastest method of collecting cash. Option A and B involve physical transportation of payments and may result in longer processing time. Option D offers a discount for early payment but does not necessarily speed up the collection process. Option E refers to reducing the time it takes for checks to clear, but does not affect the collection speed.

Which One of the Following Is Most Likely the Fastest