Choice "C" is correct. A lockbox system expedites cash inflows (minimizes collection float) by having a bank receive payments from a company's customers directly, via mailboxes to which the bank has access. Payments that arrive in these mailboxes are deposited into the company's account immediately.
Choice "a" is incorrect. Lockboxes minimize rather than maximize collection float.
Choices "b" and "d" are incorrect. Lockbox systems relate to collection rather than disbursement float.
