What is a lockbox arrangement, and how does its use reduce a firm's float?
What will be an ideal response?
The lockbox arrangement is based on a simple procedure. The firm's customers are instructed to mail their remittance
checks not to company headquarters or regional offices, but to a numbered post office box. The bank that is providing
the lockbox service is authorized to open the box, collect the mail, process the checks, and deposit the checks directly
into the company's account. Such a system speeds up the conversion of receipts into usable funds by reducing both the
mail and processing float of payments.
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Which of the following is likely to occur during economic downturns?
A) People tend to spend more on luxury goods. B) Consumption of necessary goods decline. C) Long-term credit is available at concessional rates of interest. D) The purchasing power of the population declines. E) The level of investment in the economy rises.
Unplanned for inflation makes it easier to reach our financial goals
Indicate whether the statement is true or false.