is a technique used to reduce float by having payments sent to post office boxes located near the customer.
A)Postal deposit system
B)Preauthorized debit system
C)Concentration banking
D)Lockbox arrangement
E)Zero-balance account

Question

Quizplus · Accepted Answer

A lockbox arrangement is a technique used by companies to reduce the float by having payments sent to post office boxes located near the customer. The payments are collected by the bank or an intermediary, processed quickly and deposited immediately into the company's account, reducing the time between receipt of payment and availability of funds.

Is a Technique Used to Reduce Float by Having Payments