Multiple choice technology packaged enterprise solutions

A service that commercial banks offer corporate customers to enable them to outsource their account receivables payment processing is called _______________

  1. Check Sheet

  2. Lockbox

  3. EFT

  4. GIS
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

A lockbox is a service banks offer where they collect payments from a company's customers, process them, and deposit them directly into the company's account. This outsources the accounts receivable payment processing, accelerating cash collection and reducing internal processing costs.

AI explanation

A lockbox is a banking service where a bank collects and processes incoming customer payments (accounts receivable) on behalf of a corporate client, speeding up deposit and reconciliation. EFT refers to electronic funds transfer generally and isn't specific to outsourced receivables processing, and 'Check Sheet' and 'GIS' aren't banking payment-processing services at all.

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