Question : 76.Which of the following statements a detailed invoice listing all : 1325781

 

 

76.Which of the following statements is a detailed invoice listing all checks cleared, account charges, lockbox charges, electronic transactions, etc.?

a.bank statement

b.bank account analysis statement

c.reconciliation statement

d.financial statement

e.none of the above

 

 

 

77.Which of the following statements concerning mail-based collection systems is true?

a.Regardless of recent developments in payment processing equipment, it is still too expensive for smaller companies to use mail-based collection systems.

b.Generally it is cheaper for high-volume processors to use the lockbox system rather than mail-based collection systems.

c.Low-volume processors may find that using a lockbox system is more cost effective than a mail-based collection system.

d.All of the above statements are true.

e.Only (a) and (b) are true.

 

 

 

78.Which of the following is not a benefit of using EIPP in the business-to-business market?

a.Reduced float to the receiving party

b.Lower cost of receivables processing for the receiver and payment initiation and reconciliation costs for the payer

c.Better forecasting for both receiver and payer

d.Lower cost of receivables processing for the payer and payment initiation and reconciliation costs for the receiver.

e.All of the above are benefits

 

 

 

79.Which of the following is not an advantage of cash concentration?

a.It creates a large pool of funds for use in making short-term cash investments.

b.Concentrating the firm’s cash in one account improves the tracking and internal control of the firm’s cash.

c.It results in having fewer investment opportunities to choose from.

d.All of the above are advantages.

 

 

 

80.Which of the following can be thought of as an electronic DTC?

a.Wire transfer

b.Automated Clearinghouse Debit Transfer

c.Concentrated banking

d.Field-banking system

e.None of the above

 

 

 

81.Which of the following is true concerning transfer mechanisms?

a.The firm must choose the mechanism that offers the highest earnings on the increased funds’ availability.

b.The firm must choose the mechanism that offers the lowest costs.

c.The firm must balance the marginal costs vs. the marginal benefits and select the one with the highest marginal profit.

d.In practice, most companies use wire transfers for large transfers of funds from lockbox systems and EDTs for high-volume, low-dollar transfers from small deposit banks.

e.Both (c) and (d) are true.

 

 

 

82.You have a credit card with NewBank. Calculate the new balance as of January 10 after considering the finance charge for the month which is a 1.5% monthly rate based on the average daily balance and the following purchases/payments. Your outstanding balance on December 10th is $423 and your statement extends from December 10 through January 10.

 

December 13Purchase of $189

December 20Purchase of $983

December 23Purchase of $233

January 7Payment of $500

 

a.$1,346.52

b.$1,348.20

c.$1,328.00

d.$41,742

e.none of the above

 

 

 

83.A zero-balance account is designed to:

a.provide early notification of checks that will be presented against a company’s account on a given day.

b.help combat a common type of check fraud.

c.provide a company with outsourcing of its accounts payable or disbursement operations.

d.eliminate nonearning cash balances in corporate checking accounts.

 

 

 

84.Controlled disbursement is designed to:

a.provide early notification of checks that will be presented against a company’s account on a given day.

b.help combat a common type of check fraud.

c.provide a company with outsourcing of its accounts payable or disbursement operations.

d.eliminate nonearning cash balances in corporate checking accounts.

 

 

 

85.Integrated accounts payable:

a.provide early notification of checks that will be presented against a company’s account on a given day.

b.help combat a common type of check fraud.

c.provide a company with outsourcing of its accounts payable or disbursement operations.

d.eliminate nonearning cash balances in corporate checking accounts.

 

 

 

86.Purchasing (or procurement) cards are designed to:

a.reduce the cost of low-dollar indirect purchases.

b.help combat a common type of check fraud.

c.provide a company with outsourcing of its accounts payable or disbursement operations.

d.eliminate nonearning cash balances in corporate checking accounts.

 

 

 

87.Which of the following are listed as a common fraud prevention measures?

a.Using positive pay services

b.Separating check-issuance duties (approval, signing and reconciliation)

c.Increasing the use of electronic payment methods

d.Using safety measures on checks such as microprinting and watermarks

e.all of the above are listed as common fraud prevention measures