Question

A retail lockbox system handles a large number of checks with a relatively low average dollar...

A retail lockbox system handles a large number of checks with a relatively low average dollar face value.

a. True       b. False

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

A lockbox service is service which is provided by the commercial banks to the various organisations in order to simplify the collections and accounts receivables for the organisation. One of these service is retail lockbox service.

A retail lockbox system is a system that is efficient in handling a large volume of checks of standardised invoice material which are relatively of low dollar face value.

So, the statement given above is "true".

Hope I am able to solve your concern. If you are satisfied hit a thumbs up !!

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
A Wholesale lockbox system is: Used for business to business trade Handles a small number of...
A Wholesale lockbox system is: Used for business to business trade Handles a small number of large-value payments Parts “a” and “b” None of the above  
Tantom Industries is investigating a lockbox system to reduce its collection time. It has determined the...
Tantom Industries is investigating a lockbox system to reduce its collection time. It has determined the following: Average number of payments per day 435 Average value of payment $920 Variable lockbox fee $0.15 Annual lockbox fee $2000 Daily interest rate 0.068% The total collections time will be reduced by 3 days if the lockbox system is implemented. a. (5 pts) What is the annual benefit of this lockbox system? b. (5 pts) What is the annual cost of this lockbox...
For 2019, Discovery Manufacturing is considering using a lockbox system to speed up collections from its...
For 2019, Discovery Manufacturing is considering using a lockbox system to speed up collections from its customers. They have two proposals to consider: one from BB&T, and one from Bank of America to provide a lockbox service. The basic information about each bank's proposal is presented in the table below. (Similar to Problem 27-11 AND 27-12) DATA INPUTS BB&T Bank Bank of America Rate on money market investments 3.14% 3.14% Average customer payment $2,145 $2,145 Average number of payments per...
Paper Submarine Manufacturing is investigating a lockbox system to reduce its collection time. It has determined...
Paper Submarine Manufacturing is investigating a lockbox system to reduce its collection time. It has determined the following:         Average number of payments per day 365   Average value of payment $ 955   Variable lockbox fee (per transaction) $ .40   Daily interest rate on money market securities .068 %    The total collection time will be reduced by three days if the lockbox system is adopted.    a. What is the PV of adopting the system? (Do not round intermediate...
Paper Submarine Manufacturing is investigating a lockbox system to reduce its collection time. It has determined...
Paper Submarine Manufacturing is investigating a lockbox system to reduce its collection time. It has determined the following:         Average number of payments per day 425   Average value of payment $ 1,015   Variable lockbox fee (per transaction) $ .40   Daily interest rate on money market securities .068 %    The total collection time will be reduced by three days if the lockbox system is adopted.    a. What is the PV of adopting the system? (Do not round intermediate...
A retail store has implemented procedures aimed at reducing the number of bad checks cashed by...
A retail store has implemented procedures aimed at reducing the number of bad checks cashed by its cashiers. The store's goal is to cash no more than eight bad checks per week. The average number of bad checks cashed is 1 per week. Let x denote the number of bad checks cashed per week. Assuming that x has a Poisson distribution: (a) Find the probability that the store's cashiers will not cash any bad checks in a particular week. (Round...
If the span of a moving average is large – say, 12 months – then many...
If the span of a moving average is large – say, 12 months – then many observations go into each average, and extreme values have relatively large effect on the forecasts. True or False. In an additive seasonal model, we add an appropriate seasonal index to a “base” forecast. These indexes, one for each season, typically average to 1. True or False. The trend pattern is easy to identify by using a. simple exponential smoothing b. the Delphi approach c....
True or False 6. T F The confidence interval for the average of a number of...
True or False 6. T F The confidence interval for the average of a number of future observations at a given value of the independent variable increases as the number of those future observations increases. 7. T F When you can accept a relatively large error in not rejecting a true hypothesis, you make the desirable condition the alternative hypothesis 8. T F The experimenter cannot control the independent variable at all times. 9. T F Decreasing the standard deviation...
Monetary Policy and Fiscal Policy have in the past had relatively large impacts on the economy...
Monetary Policy and Fiscal Policy have in the past had relatively large impacts on the economy because of the multiplier effect. The multiplier comes from the fact that your spending turns into income for someone else, who then in turn spends some of that money. The multiplier is calculated using the simple formula 1/(1-MPC) where MPC is the marginal propensity to consumer (how much of each additional dollar in income is spent. Historically, this value has been 0.9, that is...
In a large sample of customer accounts, a utility company determined that the average number of...
In a large sample of customer accounts, a utility company determined that the average number of days between when a bill was sent out and when the payment was made is 11 with a standard deviation of 13 days. Assume the data to be approximately bell-shaped. Approximately 95% of all customer accounts have the average number of days between two values A and B. What is the value of B? Write only a number as your answer.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT