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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Scarlet

10 hours ago

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

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Justine

6 days ago

Definitely reduces the need for compensating balances!

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Hildegarde

11 days ago

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

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Elena

16 days ago

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

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Darrin

21 days ago

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

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Fabiola

26 days ago

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

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Jamal

1 month 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

1 month 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

1 month 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

2 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

2 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

2 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

2 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

2 months ago

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

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Stefan

3 months ago

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

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Linwood

3 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

3 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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Trina

2 months ago

I think option B is really important for businesses.

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Marsha

3 months ago

True, but losing checks is a nightmare. Option C matters.

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