A business can have their customers pay directly to the bank. This is a(n) ________ system and can reduce theft.
A) direct
B) receivable
C) lock-box
D) imprest

Question

Quizplus · Accepted Answer

A lock-box system involves having a post office box that customers can send payments to directly. The payments are then collected by the bank and deposited into the business's account. This system reduces the risk of theft since the payments are not handled by the business itself. Direct and receivable systems may still involve the business handling payments, while an imprest system typically refers to a specific type of petty cash management.

A Business Can Have Their Customers Pay Directly to the Bank