Quiz Ch 30 – T/F Enhancing Collections Efficiency with Lockbox Systems
Principles of Corporate Finance
Brealey, Myers, and Allen
13th Edition
True or false: Lockbox systems are implemented to streamline the collections process.
True or false: Lockbox systems are implemented to streamline the collections process.
True or false: A commercial draft is fundamentally an instruction to make a payment.
True or false: Export credit insurance in the United States is furnished by the Export-Import Bank in partnership with a coalition of insurance firms known as the Foreign Credit Insurance Association (FCIA).
True or false: Fedwire serves as the conduit for interbank money transfers.
True or false: A commercial draft designated as a time draft implies an order for immediate payment.
True or false: Opting out of the cash discount offered on goods with terms 2/30, net 60 means customers are essentially taking a loan at an effective annual rate of around 2 percent.
True or false: “3/10, EOM, net 60” does NOT represent a valid set of trade credit terms.
True or false: Customers are usually requested to provide a promissory note as part of the transaction when goods are sold on an open account.
True or false: Cash is advantageous because it offers greater liquidity than alternative marketable securities.
True or false: Employed in transactions related to international trade are bankers’ acceptances.