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CTP · Question #560

(Topic 6) A manufacturing company selling engines and other mechanical equipment, with invoices averaging $15,000, would use which of the following systems?

The correct answer is C. A wholesale lockbox with multiple deposit points. See the full explanation below for the reasoning.

Question

  • (Topic 6)

A manufacturing company selling engines and other mechanical equipment, with invoices averaging $15,000, would use which of the following systems?

Options

  • AOver-the-counter collections in numerous locations; deposits to field banks
  • BA company processing center; deposits to nearby bank(s)
  • CA wholesale lockbox with multiple deposit points
  • DA retail lockbox with multiple deposit points

How the community answered

(49 responses)
  • A
    6% (3)
  • B
    4% (2)
  • C
    78% (38)
  • D
    12% (6)

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