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Question
A lockbox plan isa. used to identify inventory safety stocks.
b. used to slow down the collection of checks our firm writes.
c. used to speed up the collection of checks received.
d. used primarily by firms where currency is used frequently in transactions, such as fast food restaurants, and less frequently by firms that receive payments as checks.
e. used to protect cash, i.e., to keep it from being stolen.
Answer
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In a portfolio of three different stocks, which of the following could NOT be true?
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Which of the following is not correct for a firm with seasonal sales and customers who all pay promptly at the end of 30 days?
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b. The level of accounts receivable will be constant from month to month.
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d. The level of accounts receivable at the end of each quarter will be the same.
e. DSO will vary from month to month.
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a. True
b. False