Question

A ________ system prepares and mails monthly statements to customers throughout the entire month, instead of just at the end of the month.

A) continuous
B) open-invoice
C) cycle billing
D) balance forward

Answer 1

A cycle billing system prepares and mails monthly statements to customers throughout the entire month, instead of just at the end of the month.

Step-by-step explanation:

The correct answer is C) cycle billing.

A cycle billing system prepares and mails monthly statements to customers throughout the entire month, instead of just at the end of the month. This allows for a more even distribution of the workload and helps in managing cash flow.

For example, if a company has a large number of customers, it may be overwhelming to send all the statements at once at the end of the month.

With a cycle billing system, the company can divide its customer base into different groups or cycles, and each cycle is billed and sent statements at a different time during the month.