What is a lockbox system?
A lockbox system: is designed to deposit a customer's check into the firm's bank account prior to recording the receipt of that check to a customer's account. Lockboxes: should be geographically located close to a firm's primary customers. .
Does GT Motors have short term debt?
GT Motors regularly issues short-term debt to finance its daily operations. Suddenly, the credit markets froze and no funds were available for borrowing. Fortunately, the firm had some cash reserves saved that it was able to use to fund its operations until additional credit was available.
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