AFP
CTP · Question #292
(Topic 3) Recently LEW Utilities, a local utility company, began using the company processing center method to process customer payments. Prior to this change, it used its local depository bank's…
The correct answer is B. ensure that payments are correctly applied to the customer's account. See the full explanation below for the reasoning.
Question
- (Topic 3)
Recently LEW Utilities, a local utility company, began using the company processing center method to process customer payments. Prior to this change, it used its local depository bank’s lockbox to process the payments. The PRIMARY advantage of the new method is to:
Options
- Adecrease mail float as a result of applying payments in-house.
- Bensure that payments are correctly applied to the customer's account.
- Creduce the processing float since payments are mailed directly to the customer.
- Dlower overall costs since in-house processing is cheaper than third-party processing.
How the community answered
(40 responses)- A3% (1)
- B80% (32)
- C5% (2)
- D13% (5)
Community Discussion
No community discussion yet for this question.