Which of the following statements is true about lockbox network systems?

• A.A company processes and prepares its own deposits.
• B.Consolidated remittance data are generated from multiple collection points.
• C.A bank or third party receives, processes, and deposits currency primarily.
• D.Local operating units receive funds over the counter and prepare deposits.

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Transmission of a file of items presented for payment by the payor bank to the issuing company is known as:

• A.reverse positive pay.
• B.payor bank services.
• C.full reconciliation.
• D.positive pay.

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In order to increase liquidity, ABC Motor Company bundled its customers' installment payments and resold them to other investors. This is known as:

• A.reclassification.
• B.secondary distribution.
• C.factoring.
• D.securitization.

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What kind of budget forecasts the cost for investing activities?

• A.Operating budget
• B.Maintenance budget
• C.Sales budget
• D.Capital budget

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Which of the following is true of return on investment (ROI)?

• A.It is calculated as profit per dollar of invested capital.
• B.It may cause management to accept a project with positive NPV.
• C.It is commonly used to calculate after-tax profitability.
• D.It includes a charge for the cost of capital in a project.

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