The difference between a lockbox system and a mail-based system is

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A lockbox system is a post office box that is emptied by the firm's bank, whereas a mail-based system involves the firm receiving and processing checks directly through the mail. Option A is incorrect as lockbox systems are generally considered more secure, as they reduce the risk of theft and minimize the handling of sensitive financial information by the firm. Option C is incorrect as a lockbox system typically requires less in-house collection and processing by the firm, as the bank handles these tasks instead.

The Difference Between a Lockbox System and a Mail-Based System