IMANET CMA Exam - Topic 5 Question 118 Discussion

Actual exam question for IMANET's CMA exam

Question #: 118
Topic #: 5

[All CMA Questions]

A lock-box system

AReduces the need for compensating balances.

BProvides security for late night deposits.

CReduces the risk of having checks lost in the mail.

DAccelerates the inflow of funds.

Show Suggested Answer

Suggested Answer: D

A lock-box system accelerates the inflow of funds. A company maintains mail boxes, often in numerous locations around the country, to which customers send payments. A bank checks these mailboxes several times a day, and funds received are immediately deposited to the company's account without first being processed by the company's accounting system, thereby hastening availability? the funds.

by Soledad at Nov 24, 2025, 01:30 PM

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Estrella

1 month ago

All options have merit, but I lean towards B for safety.

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Sol

1 month ago

True, but lost checks are a real headache. C makes sense.

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Lili

2 months ago

But what about A? Reducing compensating balances helps cash flow.

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Lemuel

2 months ago

Option D sounds good too. Faster funds are always better.

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Lea

2 months ago

I agree, late night deposits need protection.

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Darrin

2 months ago

I thought compensating balances were still needed with lock-box systems?

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Lonny

2 months ago

Accelerates inflow of funds, for sure!

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Karol

2 months ago

Wait, can it really reduce the risk of lost checks? Not so sure about that.

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Scarlet

3 months ago

I agree, security for late night deposits is a big plus.

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Justine

3 months ago

Definitely reduces the need for compensating balances!

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Hildegarde

3 months ago

A lock-box system? Sounds like a fancy way to keep my piggy bank secure!

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Elena

4 months ago

Hmm, I'm torn between B and D. Tough choice!

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Darrin

4 months ago

C is the way to go. Reducing the risk of lost checks is crucial.

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Fabiola

4 months ago

D definitely seems like the best option here. Gotta get that cash flowing in!

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Jamal

4 months ago

I’m leaning towards A and D being true, but I need to double-check if they both really apply to lock-box systems.

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Kenia

4 months ago

I feel like I read something about how lock-box systems can help with lost checks, but I can't recall the details clearly.

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Skye

4 months ago

I remember practicing a question about how lock-box systems can speed up cash flow, so I think D might be correct.

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Johnetta

5 months ago

This question seems straightforward, but I want to make sure I don't miss any details. I'll read through each option carefully and think about how a lock-box system addresses those banking needs.

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Avery

5 months ago

Wait, I'm a little confused on what exactly a lock-box system is. I better quickly review my notes to make sure I understand how it works before trying to answer this.

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Evette

5 months ago

Alright, time to put my banking knowledge to the test. I'm pretty confident I know the main advantages of a lock-box system, so I'll just need to match each option to the right benefit.

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Leila

5 months ago

I think the lock-box system definitely helps with security for late night deposits, but I'm not entirely sure if it reduces compensating balances.

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Shawnna

5 months ago

I think the correct answer is D. Accelerates the inflow of funds.

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Stefan

6 months ago

I think option B is the best. Security is key!

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Linwood

6 months ago

Okay, let me see. A lock-box system, that's where customers can deposit checks directly into a secure box, right? I think the key is to understand how that impacts the inflow of funds and reduces risks compared to traditional mail-based deposits.

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Lazaro

6 months ago

Hmm, this seems like a straightforward question about the benefits of a lock-box system. I'll need to carefully consider each option and think about how a lock-box system would address those banking needs.

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